By SEMA Washington, D.C., Staff
The U.S. Department of Labor (DOL) is proposing to raise the cap from $23,660 to $35,308 for management, administrative and professional employees who are exempt from receiving overtime pay when they work more than 40 hours per week. The pay threshold is frequently called the Fair Labor Standards Act’s “white collar” exemption. In 2016, the Obama Administration raised the cap to $47,476 per year but it was struck down by a federal court.
The $23,660 threshold was last set in 2004. The Obama Administration rule included a periodic cost-of-living adjustment, but the current proposed rule would keep the cap at $35,308 until there is a future rulemaking. It is estimated that an additional 1.3 million Americans who work more than 40 hours per week would become eligible for overtime pay under the proposed rule.
For more information, visit the U.S. Department of Labor website.
Questions? Contact Stuart Gosswein at stuartg@sema.org.