DOL’s 2019 FLSA Overtime Rule Proposal
The Fair Labor Standards Act (FLSA) is the federal law that determines which employees are eligible for overtime pay and which are ineligible. Unless exempt, employees covered by the FLSA must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rate of pay.
On March 7, 2019, the Department of Labor (DOL) announced a proposed update to the salary threshold for exemptions to the FLSA’s overtime pay requirements. DOL proposes raising the standard salary threshold from its current level of $455 per week or $23,660 annually to $679 per week or $35,308 annually. DOL’s salary level test is one of the tests that determines which employees qualify for overtime pay.
Under FLSA overtime regulations, employees are designated as nonexempt hourly employees who are eligible to receive overtime pay or as exempt salaried employees who are not eligible to receive FLSA overtime pay. To qualify as exempt, an employee must satisfy the following three tests:
- Have a salary above the minimum salary threshold;
- Be paid on a “salary basis;” and
- Perform duties that qualify for an exemption.
We are currently reviewing to see which staff may be impacted and developing plans to address the changes to the salary threshold, if the rule is finalized as proposed. If you have questions about the FLSA or the provisions of the proposed rule, please contact your institution’s HR staff or email firstname.lastname@example.org.