Today, the U.S. Department of Labor (DOL) announced a proposed rule that would raise the minimum salary for an employee to be exempt from overtime pay from $684 per week ($35,568 annually) to $1,059 per week ($55,068 annually). The overtime exemptions that would be impacted are the administrative, professional, executive, and computer employee exemptions from overtime pay. This summer, Congress had been considering legislation to increase the threshold, but the proposed increase by the DOL is larger than the increase contained in the bill before Congress.
Once the proposed rule is published in the Federal Register, there will be a 60-day public comment period. Normally, it is months after the comment period closes before a final rule is announced and published. Accordingly, employers should be prepared to evaluate their pay practices in early 2024 to ensure compliance with the new DOL rule.
Sprouse Shrader Smith PLLC will continue to provide updates on this issue. In the meantime, feel free to reach out to either the writer of this article or your attorney at the firm with any questions.
Article by Iwana Rademaekers
Sprouse Shrader Smith PLLC
August 30, 2023