Labor Department Proposes New Overtime Threshold

The U.S. Department of Labor has issued its long-awaited overtime proposal, suggesting employers must pay overtime to workers who earn less than $679 a week, or $35,308 per year.

This is an increase from the $455 threshold, or $23,660 a year, under the current standard, which was set in 2004. It is less than the $913 a week, or $47,476 annual salary, that had been proposed by the Obama administration.

Also unlike the Obama administration proposal, which called for updating the threshold every three years, this proposal would not include an automatic adjustment mechanism.

The proposed rule would take effect in January 2020. The public has 60 days in which to comment. See the rule and comment at FarmEquip.org/overtime.

Source: Business Insurance