On March 07, 2019, the Department of Labor announced a proposed update to FLSA’s salary threshold, which would ultimately increase the number of employees eligible for overtime.
Currently, under FLSA, employees with a salary below $455 per week ($23,660 per year) must be paid overtime for all hours worked over 40 in a workweek. Under this proposed update, the salary threshold for overtime would increase to below $679 per week ($35,308 per year).
To recap, the Fair Labor Standards Act (FLSA) sets out rules that determine when employees are exempt from the minimum wage and overtime pay requirements. To qualify as exempt, an employee’s primary job duties must fall under the executive, administrative, or professional categories set out by the FLSA and the employee must meet a specific salary threshold as identified above. The proposal would only change the salary threshold and would not change the current job duties requirements under FLSA.
It is important to note that this proposal is not finalized and will be open for comments. If approved, the new salary threshold requirement would take effect in January 2020.
Cascade will continue to stay on top of this proposal and we will alert you on any updates. If you have any questions, please let us know!