On March 22, the Department of Labor (“DOL”) published a new proposed rule that would make several changes to current overtime law. The proposed rule, which is not yet in effect, would require that:
- Employees make at least $679 per week ($35,308 annually) to potentially be exempt from overtime. (The current requirement, which has been in place since 2004, is at least $455 per week or $23,660 annually.)
- Employers be allowed to use nondiscretionary bonuses and incentive payments such as commissions that are paid at least annually to satisfy up to 10 percent of the salary threshold.
- “Highly compensated employees” make at least $147,414 per year (compared with $100,000 under current law).
- Going forward, the DOL commit to periodically reviewing and updating the minimum salary threshold (after a public notice and comment period).