August 31, 2023

PROPOSED NEW RULE ON OVERTIME

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You may have heard on the news that the Department of Labor has proposed a rule that would make significant changes to the availability of overtime-exempt status for certain white-collar workers.  If the rule becomes final, it will increase the minimum salary exempt administrative, executive, and professional employees must earn from the current level of $684/week ($35,568 annually) to $1,059/week ($55,068 annually).

 

If the rule goes into effect, it will obviously have a significant impact on employers, who will be obliged to review their compensation structures and the way they classify occupations. At this point, however, we do not know when (or even whether) the change will go into effect.  We have come to the brink of steep increases to the salary threshold before, only to see the courts strike them down.

 

I mention this to you in the event you are interested in giving client’s advance notice about the potential change and possibly developing an alert to be used for this purpose.

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If you have questions or concerns about this new development, contact Jill McQueen at 330-563-4174 or email jmcqueen@aghattorneys.com

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