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September 24, 2019

DOL Finalizes Overtime Pay Rule

DOL Finalizes Overtime Pay Rule

The Department of Labor (DOL) has finalized a new overtime pay rule under the Fair Labor Standards Act.  The agency periodically updates the salary threshold below which employees who work more than 40 hours in a week must be paid time and a half overtime. 

The existing salary threshold of $455 weekly/$23,660 annually was set by a DOL rulemaking in 2004.  Effective January 1, 2020, the salary threshold will increase to $684 weekly/$35,568 annually. 

DOL did not change the duties test for determining whether an employee who earns more than the salary threshold is exempt from overtime pay.  The agency committed to more regular updates to the rule going forward, although it declined to include a prior proposal for automatic increases to the salary threshold.

ACEC submitted comments in May in support of the rule.  Labor advocates are considering legal challenges.

To read the entire rule, click here.

All comments to blog posts will be moderated by ACEC staff.

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September 24, 2019



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