Department of Labor issues final overtime rule
The Department of Labor (DOL) Tuesday released its final overtime rule adjusting the earnings thresholds related to the Fair Labor Standards Act’s minimum wage and overtime requirements.
CUNA noted in its comments on the proposal, submitted in May, that it is an improvement over the 2016 rule, and requested the DOL avoid creating excessive costs for small entities. Implementation of the 2016 rule was blocked in November 2016 by the U.S. District Court for the Eastern District of Texas.
Specifically, the final rule:
- Raises the “standard salary level” from the currently enforced level of $455 per week to $684 per week (equivalent to $35,568 per year for a full-year worker);
- Raises the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year;
- Allows employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level, in recognition of evolving pay practices; and
- Revises the special salary levels for workers in U.S. territories and the motion picture industry.
In addition to the overtime changes, the Department announced an intent to conduct regular updates to promote stability and avoid disruptive salary increases that can result from lengthy gaps between salary adjustments.