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Department of Labor to Propose New Overtime Rules

The Executive Branch has pushed for the expansion of overtime availability. Last year, President Obama used his executive authority to trigger a review and revision of the current overtime rules, which currently prevent certain classes of salaried workers from receiving overtime compensation. Specifically, Obama asked the Department to reevaluate the salary threshold at which employers are no longer obligated to pay employees overtime. That weekly threshold has been $455 since 2004. A change in that threshold level could make low-level supervisors in retail, fast food, health care and other industries eligible for overtime pay.

The Department of Labor recently announced they have finished drafting the new rules, and will soon be submitting the proposed guidelines for public review. The Department of Labor Secretary, Tom Perez, stated that they submitted the proposal to the Office of Management and Budget for review. He further commented "The rules governing who is eligible for overtime have eroded over the years. In the near future, the public will have an opportunity to weigh in and help us craft a final rule." An expansion of the FLSA's overtime provisions will affect businesses across the board, and prompt many employers to reevaluate their current compensation schemes.

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