Overtime Proposal Published, Public Comments Sought

The Department of Labor (DOL) today published a Notice of Proposed Rulemaking (NPRM) regarding its overtime initiative in the Federal Register, opening a 60-day window for the public to offer comments, which will end May 21. Earlier this month, the DOL sent a draft of the proposed rule to the Office of Management and Budget (OMB) to begin the process of finalizing everything. Today's action marks the next phase the department must follow when it seeks to establish a new regulation. The NPRM focuses on the salary threshold above which employees in administrative, professional and executive categories will no longer be eligible for overtime pay. The new threshold is being set at $35,308 a year under terms of the NPRM. The current threshold is $23,660 annually, established in 2004. In 2016, the Obama-era DOL proposed a salary threshold of $47,476 a year, but a federal judge in Texas blocked that proposed, citing administrative overreach by the department. His injunction now sits before the 5th U.S. Circuit Court of Appeals for review. The review is being held in abeyance at the request of the Trump administration. The new rule, if finalized, would take effect in 2020.