An estimated 3.6 million U.S. workers would become eligible for overtime pay under the proposed rule, the agency said Wednesday.

Dive Brief:

  • The U.S. Department of Labor will propose an increase of the minimum salary threshold for overtime eligibility under the Fair Labor Standards Act to $1,059 per week, or $55,068 per year, the agency announced Wednesday.
  • In a press email, DOL said the updated regulations would expand overtime eligibility to some 3.6 million workers. The proposed threshold would mark an increase from the current level of $35,568 per year — set by the Trump administration in 2019 — and even surpasses the $47,476 threshold that the Obama administration attempted to set in 2016.
  • DOL’s proposal also would increase the total annual compensation requirement for highly compensated employees to $143,988 per year. The proposal outlines an automatic update provision for future overtime thresholds beyond what is included in the proposed rule and would not make changes to the FLSA’s “duties test” for determining overtime eligibility. Once published in the Federal Register, the proposal will be subject to a 60-day public comment period.
  • If past efforts are any indication, the rule would likely see challenges in court. That thinking is based partly on past precedent: A federal judge enjoined the Obama administration’s 2016 threshold following challenges from multiple states and employer groups.

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