US Department of Labor Proposes Overtime Rule
The US Department of Labor on Monday announced a proposed rule that would extend overtime pay to nearly 5 million workers, raising the overtime exemption threshold from a yearly salary of $23,660 to $50,440.
Currently, the salary level under which administrative, executive, and professional employees are eligible for overtime compensation is $23,660 per year, or $455 per week on a salary or fee basis. For fee-based compensation, eligibility is determined by calculating whether the fee payment rate would amount to the minimum salary if the employee worked 40 hours per week. The new regulation changes the annual salary for overtime eligibility to $50,440 per year, or $921 per week on a salary or fee basis.
According to a press release by the Department of Labor, the proposed rule additionally provides “further clarification” about which employees are eligible for overtime.
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