Gulfshore Insurance > Gulfshore Blog > Commercial Risk Management > DOL Releases Proposed Overtime Pay Requirements

On March 7, 2019, the U.S. Department of Labor (DOL) released its long awaited proposed rule to amend current overtime regulations. Specifically, the proposed rule would raise the minimum salary threshold under the Fair Labor Standards Act (FLSA) “white collar” exemption to $35,308 per year ($679 per week). The proposal does not call for automatic adjustments to the salary threshold; however, it does propose updates to the salary threshold every four years.

Currently, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week. Employees making at least this salary level may be eligible for overtime based on their job duties. This salary level was set in 2004.

Full information about the proposed rule is available here.

Next Steps

The public will now have 60 days to submit comments about the proposed rule electronically at www.regulations.gov. The DOL will take time to review submitted comments and an effective date for the final rule is not expected until 2020.

Gulfshore Insurance will continue to monitor any updates to the FLSA exemption rules and provide updates as they become available.