35K Proposed as New Overtime Salary Threshold

The U.S. Department of Labor just issued its revised overtime rule. You can read it in full here.

If the rule takes effect on Jan. 1, 2019, as proposed, nonexempt employees who earn up to $679 per week ($35,308 per year) would become eligible for overtime pay after working 40 hours during a 7-day period. Overtime eligibility for highly compensated employees would also increase, and employers could count nondiscretionary bonuses and incentive payments as 10 percent of an employee’s standard salary.

Importantly for IPMA-HR members, rules for deeming police officers, firefighters, paramedics and nurses eligible for overtime will not change. Likewise, the job duties test will remain the same for every employee.

The new salary threshold is far below the one set during the Obama administration. A federal court blocked that revision, and the Trump administration abandoned an appeal of the decision.

IPMA-HR intends to write DOL to express support for the new salary threshold test. To discuss the Association’s position, email Executive Director Neil Reichenberg at nreichenberg@ipma-hr.org.