Will Salaried Employees Be Eligible for Overtime?

Southwestern HR Consulting (SWHRC) previously reported that the Department of Labor (DOL) was holding listening tours last spring regarding the potential for changes to the exemption status under the Fair Labor Standards Act(FLSA). The federal regulatory agenda released on June 21, 2022, shows that the DOL Wage and Hour Division (WHD) is reviewing “29 CFR (Code of Federal Regulations) 541,” which implements the exemption of bona fide executive, administrative, and professional employees from the FLSA’s minimum wage and overtime requirements.

The prior listening sessions were intended to obtain feedback from the public and did not provide specific proposed changes to the exemptions. However, the DOL is planning to have a proposed rule published for October 2022. The current annual rate is $35,568. If raised, this
would mean employers could have to pay overtime to individuals which were previously considered salaried under the prior threshold. In addition, other changes to the exemption test based on duties could have the same effect. Employers will want to follow this closely. Once the proposed rule is published, there will be a comment period for the public to provide
feedback. SWHRC will be tracking this item and will provide periodic updates.

If you have questions about how compliance issues may affect your business, contact SWHRC today!