Proposed Changes to Overtime Pay & OSHA Inspections

10 months ago

The Feds had signified they would be putting forth a proposal on changes to the current exemption threshold sometime in August. On August 30, 2023, they announced a NPRM (Notice of Proposed Rulemaking) on the exemption amount. In it, they state that the proposal is to ensure overtime pay for “most salaried workers earning less than $1,059 per week, about $55,000 per year.”

What does this mean if passed? All salaried/exempt employees must make a minimum of $1,059 per week (every week, not an average) or be reclassified as hourly/non-exempt, must report their time, and be eligible for overtime for any hours over forty (40) that are worked each week.

Currently the salary threshold is $35,568 or $684 per week. The proposed increase is more than 1 and ½ times the current rate.

The DOL signified that the NPRM would be open for public comment for a period of 60 days once posted in the Federal Register. The NPRM, has been posted on https://www.dol.gov/regulations. You may enter comments on the sub-link. The comment period will end on November 7, 2023.

The Department of Labor (DOL) has also proposed a rule that an employee can authorize a non-employee third party to accompany them in an Occupational Safety and Health Administration (OSHA) inspection “if the compliance officer determines the third party is reasonably necessary to conduct an effective and thorough inspection.” These changes may allow union representatives and other representatives beyond the limited scope of experts that were previously allowed. Comments may be submitted at https://www.regulations.gov.

Now is the time for employers to become familiar with the proposed changes and determine how they may affect their businesses, if enacted. If you have questions about the changing employment regulations, contact Southwestern HR Consulting (SWHRC) today and we can provide you with guidance from our team of experts.