DOL’S NEW OVERTIME RULE IS FINALLY HERE
On March 7, 2019, U.S. Department of Labor issued its much-anticipated proposed overtime rule raising the salary-level threshold for exempt employees from the current $23,660 to $35,308. If the Rule becomes effective, employees currently classified as “exempt” but making less than $35,308 will be reclassified as nonexempt and therefore eligible for overtime pay.
In evaluating how this Rule will impact its workplace, Employers can take solace in the fact that the Rule makes no change to the traditional “duties” tests, which would have potentially required a much more complex evaluation of all exempt positions. Under the Rule as proposed, Employers can focus their assessment on whether it makes sense to raise the salary above the threshold for any given position or to change the status of a position to nonexempt and accept that overtime pay will be required.