On June 30, 2015, the U.S. Department of Labor (DOL) Wage and Hour Division published a proposed rule to revise the overtime pay provisions under the Fair Labor Standards Act (FLSA). The proposed rule would update the regulations governing which executive, administrative, and professional employees are entitled to overtime pay under the FLSA. The DOLís proposed rule could result in certain employees who are currently exempt under the FLSA being reclassified as non-exempt and therefore entitled to overtime pay.
The proposal seeks to raise the salary test threshold from $23,660 a year to roughly $47,892 annually (or a projected $50,440 at the estimated time of the release of the final rule in 2016), meaning that individuals making less than $50,440 would be eligible for overtime pay if they are working in excess of 40 hour in a week. The proposed rule was published in the July 6, 2015 Federal Register with a 60-day comment period that closes on September 4.
FMI will be hosting a webinar on Monday, July 13 at 2:00 p.m. EDT to provide FMI members with an overview of the proposed rule and an opportunity to ask questions and voice concerns with the overtime proposal.