On March 7, 2019, the Department of Labor announced a proposed rule that would expand overtime eligibility for a million more employees. Currently, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work in excess of 40 hours in a week. The new proposed rule would now encompass employees with a salary below $679 per week ($35,308 per year). Unlike the 2016 rule, which set a formula for the overtime threshold to rise automatically with inflation, the proposed rule directs DOL to update the threshold at its discretion every four years. The proposed rule would also permit employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10% of the salary threshold. This proposed rule will not change overtime protections for police officers, fire fighters, paramedics, nurses, laborers, and non-management employees in maintenance, construction and similar occupations.
