Get ready to crunch the numbers again. After years of false starts, lawsuits and regulatory back-and-forth, it appears this new version of the overtime salary threshold may actually be finalized--possibly by Jan. 1, 2020.
Under the proposed changes unveiled last month by the U.S. Department of Labor, white-collar employees earning up to $35,308 per year would be eligible for overtime pay--a roughly 50% increase over the current salary threshold of $23,660, a level that's been in place since 2004.
The new overtime rule is meant to replace Obama-era changes that were blocked by the courts in 2016 before they ever took effect. The new threshold now faces a 60-day comment period and is tentatively slated to go into effect when the calendar turns to 2020.
What it means: If the new rule is enacted, exempt administrative, executive and professional employees earning $35,308 per year ($679 per week) or less will be eligible for overtime pay when they work more than 40 hours in a workweek.
The DOL says that would mean at least one million additional white-collar employees will suddenly be reclassified and qualify for overtime pay. The rule does not require congressional approval.
The DOL decided...