June 13, 2023

U.S. DOL Announces New Overtime Rule is on the Horizon

On June 13, 2023, the U.S. Department of Labor (DOL) published its Spring 2023 regulatory agenda. Included was the announcement that DOL’s Wage and Hour Division  “is reviewing the regulations at 29 CFR 541, which implement the exemption of bona fide executive, administrative, and professional employees from the Fair Labor Standards Act’s minimum wage and overtime requirements.” The new, proposed rule is now scheduled to be published in August.

DOL previously announced that it would increase the minimum salary threshold. Today, an employer may not properly classify an employee as exempt who earns less than $684/week ($35,568/year).  Some project the new minimum salary will be somewhere in the mid to upper $50,000/year range.

DOL also asked for public comment on the duties tests used to determine exempt status.  This suggests we may also see changes to one or more of those tests under the Executive, Administrative, or Professional exemptions.

TIP: Don’t hold your breath. This is the DOL’s third extension. WHD originally announced its intent to publish a proposed rule in April 2022. That was delayed to October 2002, then to May 2023. Now, it’s pushed to August.  Add to that, the fact that the nomination for U.S. Department of Labor Secretary Jule Su seems stalled and not yet confirmed, some speculate another delay may be on the horizon.