On August 30, 2023, the United States Department of Labor published their proposed rule regarding overtime exemption thresholds.
Currently, for an executive, administrative or professional employee to be eligible for FLSA minimum wage and overtime pay, they must make less than $35,568/year.
The new rule proposes that this group of employees must now make less than $55,068/year to be eligible for overtime pay and minimum wage FLSA requirements; a change that would encompass a much larger group of employees, at least 3 million more than are currently protected.
Moreover, this proposed rule change also incorporates an automatic update to the threshold every three years based on nationwide average earnings.
More information can be found at the USDOL’s News Release, https://www.dol.gov/newsroom/releases/whd/whd20230830, titled “Department of Labor Announces Proposal to Restore, Extend Overtime Protections for 3.6 Million Low-Paid Salaried Workers.”
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