DOL proposes new OT rule setting FLSA exemption threshold at $35K
On Thursday, March 7, 2019, the United States Department of Labor (DOL) released its long-awaited PROPOSED replacement to the Obama administration’s controversial salary thresholds required for workers to qualify for the “white collar” exemptions under the federal Fair Labor Standards Act. The newly proposed threshold is $35,308 per year, which is about $12,000 per year more than the current threshold of $23,660 but about $12,000 lower than the threshold that had been set (and ultimately invalidated) under President Obama. The DOL is asking for public comment for 60 days and has tentatively proposed an effective date of January 1, 2020.
For more information about the proposed federal changes, visit the DOL website.
Pennsylvania employers should be aware that the Pennsylvania Department of Labor and Industry also has proposed incremental increases to the salary threshold as follows: $610 per week ($31,720 per year) in 2019; $766 per week ($39,832 per year) in 2020; and $921 per week ($47,892 per year) in 2021. A decision is expected on those proposed changes in the next several months.
Prior to making any changes in an effort to comply with these proposed new rules employers should consult with experienced human resources professionals and/or labor and employment counsel. For MEA members, the Hotline and a Member Legal Services attorney are available to provide this assistance.
Amy McAndrew, Esquire
Director of Member Legal Services
MidAtlantic Employers’ Association
*This Alert is provided for general informational purposes only and does not constitute legal advice.