DOL Proposes 35K Overtime Rule Threshold

On March 22, 2019, the Department of Labor (DOL) proposed a rule which increases the minimum salary for the “white collar” overtime exemption from $23,660 annually to $35,308 annually. To be exempt from overtime pay, workers making at least $35,308 must also meet certain job duties for executive, administrative, and professional employees. Workers with a salary below $35,308 must be paid overtime if they work more than 40 hours a week. This threshold is more moderate than the $47,476 minimum salary that DOL proposed in 2016 but never became effective. This proposed rule also allows employers to use nondiscretionary bonuses and incentive payments that are paid annually or more frequently to satisfy up to 10 percent of the standard’s salary level. DOL will propose updates to this salary threshold every four years, with a notice-and-comment rulemaking period. Advocacy is seeking feedback and data on the economic impact of this rule on your small business. We also welcome recommendations on regulatory options that may minimize the cost of this rule.

Comments on this rule are due May 21, 2019.

  • Advocacy contact: Janis Reyes at 202-619-0312.
  • Submit electronic comments here.

Advocacy is holding multiple Small Business Roundtables on this proposed rule. Please e-mail to RSVP. For more information, visit Advocacy’s website here.

  • Tampa, Florida
    Thursday April 4, 2019 – 2:00 pm – 4:00 pm (EDT)
    Florida SBDC at the University of South Florida Port Tampa Bay
    Building 1101 Channelside Dr., Suite 210 Tampa, FL 33602
  • Washington, DC
    Thursday April 11, 2019 – 2:00 pm – 4:00 pm (EDT)
    SBA Headquarters, Eisenhower Room B
    409 Third Street SW Washington, DC 20416
    (Call-in option available)
  • Mobile, Alabama
    Tuesday April 30, 2019 – 9:00am – 11:00 am (CDT)
    Mobile Area Chamber of Commerce
    451 Government St.
    Mobile, Alabama 36602