New Overtime Rule

Date: May 07, 2019

Related Content: Analysis Labor

The U.S. Department of Labor (DOL) has proposed a NEW overtime rule under the Fair Labor Standards Act (FLSA). This proposed rule would increase the minimum salary for the “white collar” overtime exemption from $23,660 annually to $35,308 annually. This means that employees making under $35,308 annually would be eligible for overtime pay. This proposed threshold is lower than the threshold of $47,476 that the Obama administration issued in 2016, but never became effective after NFIB successfully sued to stop the rule.

Take Action

The DOL needs to hear from small businesses about the proposed rule: Will the proposal to raise the overtime exemption for salaried employees from the current $23,660 per year ($455 per week) threshold to $35,308 per year ($679 per week) impact your business? Is a $35,308 threshold appropriate? What types of costs will your small business incur if you employ a salaried employee who makes less than $35,308 per year? Will you make that employee hourly with potential for overtime? Will you raise the employee’s salary?

NFIB encourages small business owners to submit comments on the DOL’s Overtime Rule by May 21, 2019.
NFIB’s Position

NFIB harbors doubts about DOL’s authority to impose a salary-level test, but NFIB appreciates DOL’s efforts to limit the economic damage the salary-level test causes. NFIB is continuing efforts to curb burdensome rules that negatively affect small business owners. Read NFIB’s Comment Letter to the DOL.


Related Content: Analysis | Labor

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