Wednesday, August 2, 2017

Department of Labor Issues Request for Information on Overtime

The Department of Labor (DOL) published a Request for Information (RFI)  seeking input on how to move forward with new rule-making regarding the overtime rule. 

In 2016, the Obama administration finalized a rule that would have doubled the salary threshold under which certain workers would be guaranteed time-and-a-half pay when they work more than 40 hours in a given week. The rule faced subsequent litigation, during which a judge issued a preliminary injunction and the Trump administration ultimately declined to argue in support of the new threshold.

DOL is not currently proposing changes, but has issued an RFI to gather various perspectives to inform potential future rule-making. The RFI consists of 11 questions that cover a wide variety of issues related to determining which employees should be exempt from the requirement to pay overtime compensation.  

These issues include:
  • What methodology should be used for setting the salary threshold, and similarly, should the 2004 threshold just be updated for inflation?
  • Should there be changes made to the duties test, and should the salary test be eliminated in favor of a duties-only test for exemption?
  • Should there be multiple salary levels to account for geographic, employer size, or some other difference?
  • Should there be different salary levels for different exemptions?
  • How should bonuses and incentive payments such as commissions be treated?
  • Should the salary level be automatically updated?

Comments are due September 25 electronically or by mail. Electronic submissions are encouraged and can be submitted here.

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