The U.S. Department of Labor’s prior attempt to change overtime regulations for salaried employees is taking a turn under the Trump administration. The DOL’s proposed overtime regulation under the Obama administration last year had suggested that workers with a $47,476 salary or lower would be eligible for overtime pay under federal wage laws. That salary figure doubled the previous overtime cap of $23,660 and would have increased the number of workers eligible to receive overtime to nearly four million.
A group of 21 states and business groups had filed a lawsuit last year challenging the rule. A federal judge blocked the new overtime rule from going into effect late last year. The DOL had appealed that decision. However, in a brief to the court this month, the agency defended its right to determine a salary cap level, but asked the court not to rule on the validity of the proposed salary cap specified in the overtime rule.
Under the Trump administration, the agency has indicated that it may eliminate having a salary threshold to determine when an employee receives overtime, instead leaving overtime eligibility to be based solely on an employee’s job duties.
In asking for public comment, the agency is seeking suggestions on an appropriate salary cap level, whether non-discretionary bonuses and incentive payments should be included as part of the salary cap level and the duties that determine which employees qualify for overtime pay.
You can see the RFI in the federal register at this link.
Comments are due by September 25, 2017.