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DOL Sets New Overtime Rule Exemption Threshold

The U.S. Department of Labor (DOL) issued its highly anticipated overtime rule, raising the minimum salary threshold required for workers to qualify for the Fair Labor Standard Act’s (FLSA) white-collar exemptions to $35,308 per year.  The rule will boost the standard salary level from $455 to $679 per week.

The FLSA requires employers to pay employees overtime pay for hours worked over 40 in a workweek. There are exemptions to this rule for employees who work in white collar jobs that are executive, administrative, or professional in nature. This common exemption is referred to as the white-collar exemptions.

The salary threshold was last increased in 2004, during the George W. Bush administration. In 2016, the Obama administration overtime rule nearly doubled the threshold to just over $47,000 but was ultimately block by a Federal Texas Judge just days before the rule was set to take effect.

The DOL anticipates the rule will take effect in January 2020.

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