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Breaking News: DOL Secretary Plans to Raise Overtime Exempt Salary Threshold

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  • Breaking News: DOL Secretary Plans to Raise Overtime Exempt Salary Threshold

Last week, Secretary of Labor Marty Walsh testified before Congress that his team is currently reviewing the minimum salary level required for an employee to be classified as overtime-exempt.

 

Benn Penn, an attorney at Bloomberg Law has reported the following:

 

The department is reviewing whether to update the salary threshold below which workers are eligible for overtime pay, Walsh said. The current annual overtime eligibility salary cutoff, of about $36,000, is “definitely” too low, he told the panel.

“Do you have any plans to revisit this issue and re-regulate in this area?” Rep. Mark Takano (D-Calif.) asked Walsh.

”We’re currently right now doing that, reviewing that regulation,” he responded. “Literally, as we speak, we have people at the Department of Labor working on that.”

 

Read the full article here: https://news.bloomberglaw.com/health-law-and-business/overtime-pay-rule-under-review-by-labor-department-walsh-says

 

Looks like DOL could be revisiting the Obama requirement of $913/week if the Biden DOL determines a change is needed.  This will definitely be fought hard by employers around the country. But, it passed once before. So, this time the DOL will be very careful to get the salary level they want in a way that avoids the sort of litigation we saw with the previous rule.

 

Stay tuned!

 

 

Lisa Smith, SPHR, SHRM – SCP

Certified EEO Investigator (EEOC)

Lead Support and Content Chief – HelpDeskforHR.com

“You cannot be audit-proof, but you can Be Audit-Secure.”

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