The DOL released its final overtime rule which expands overtime protections increases the minimum salary thresholds required to exempt a salaried bona fide executive, administrative, or professional employee (EAP) from federal overtime pay requirements.
The Fair Labor Standards Act requires employers to pay employees a minimum wage for all hours worked and a time-and-a-half overtime rate for all hours worked over 40 in a work week. However, it provides certain exemptions.
While the issue of whether employees are properly classified as exempt is always an issue that could potentially arise, exempt status is more likely to be called into question if and when the Department of Labor (DOL) goes forward with a proposed increase in the salary amount required to qualify as exempt. It has been reported that such a proposed rule could be issued in early 2019.
ACCA lauded action by the Eastern District Court of Texas striking down the Obama administration’s overtime rule, which would have required employers to pay overtime to most salaried workers earning less than $47,476 annually, a drastic increase from the current annual salary limit of $23,660.