As anticipated, earlier this month, the U.S. Department of Labor announced a Notice of Proposed Rulemaking (NPRM) that would make more than a million more American workers eligible for overtime. This proposed rule is generally referred to as the “Overtime Rule”.
Under currently enforced law, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week. Workers making at least this salary level may be eligible for overtime based on their job duties. This salary level was set in 2004.
The new proposal would update the salary threshold using current wage data, projected to January 1, 2020. The result would boost the standard salary level from $455 to $679 per week (equivalent to $35,308 per year). The new proposal does not include automatic increases to the minimum salary level or the highly compensated test which were highly contentious provisions in the former rule proposal.
As you may be aware, Argentum, along with several prominent businesses, and organizations that represent business such as the U.S. Chamber of Commerce and the Coalition for a Democratic Workplace, successfully opposed the Obama-era overtime rule proposal because it sought to raise the threshold from the current $23,660 per year to effectively $50,000 per year.
The Department of Labor’s proposed rule raising the salary threshold to $679 per week ($35,308 per year) was generally expected and most businesses agreed that some adjustment to the threshold was necessary.
The Department is requesting public comment on the NPRM’s language for periodic review to update the salary threshold. An update would continue to require notice-and-comment rulemaking.
Maury Baskin, Argentum’s labor counsel, published an article regarding the rule.
Argentum has been active in submitting comments and discussing negative impacts for prior versions of the proposed rule that were developed during the Obama Administration. We will again stand ready to actively offer guidance for the new rule to ensure the unique needs of senior living employees and employers are represented.
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