After months of speculation, the Department of Labor issued proposed regulations last month that would update and revise overtime regulations.  Under the proposed rule, the salary threshold for overtime exemption would raise to equal the 40th percentile of weekly earnings for full-time salaried workers.  This would raise the current salary threshold from $455/week (or $23,660/year) to a projected level of $970/week (or $50,440/year) in 2016.  The Notice of Proposed Rulemaking also requests comments on the current duties test and the possibility of including nondiscretionary bonuses to satisfy a portion of the salary requirement.

 

The comment period on the proposed rule is currently open through September 4, 2015.  Comments can be submitted on the Regulations.gov website, and the DOL plans to consider all comments received in developing the final rule for implementation.