DOL Seeks to Expand Overtime Pay Rules

From Material Handling & Logistics News:

A major expansion in the number of people working in the United States who employers are legally obligated to pay overtime wages will expand greatly under a Notice of Proposed Rulemaking (NPRM) announced by the Department of Labor (DOL).

At this time, employees who earn $684 per week (or at least $35,568 per year) meet the salary threshold to be classified as exempt from overtime under the federal White Collar exemptions from federal overtime law. The NPRM proposes to increase the salary floor for the White Collar exemptions to $1,059 per week (or $55,068 per year).

At present, federal overtime rules provide overtime payment exemptions to executive, administrative and professional staff members or under the Highly Compensated Employee (HCE) exemption. This only applies if the worker performs certain defined duties for the employer and the worker is paid a salary that exceeds a minimum set under DOL rules.