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Labor Department to Reconsider Overtime Pay Rule

By SEMA Washington, D.C., Staff

The U.S. Department of Labor (DOL) intends to revisit a 2016 rule doubling the threshold at which employers must pay salaried workers time-and-a-half for overtime work. The DOL rule raised the minimum salary threshold required to qualify for the Fair Labor Standards Act’s “white collar” exemption to $47,476 per year.

While the rule was scheduled to take effect December 1, 2016, a challenge being considered in a federal appeals court placed it on hold last November. Before the rule was revised, management, administrative and professional employees who earned a salary of more than $23,660 per year were exempt from receiving overtime pay when they worked more than 40 hours per week. The rule impacts an estimated 4.2 million salaried workers. Some employers had already increased workers’ salaries or adjusted work schedules in anticipation that the rule would take effect. The DOL intends to reopen the rule to public comment.

For more information, contact Stuart Gosswein at stuartg@sema.org.

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