US Department of Labor Proposed Overtime Rule

Source: PA Chamber of Business & Industry

The U.S. Department of Labor announced last week that it intends to increase the minimum salary level necessary for an employee to potentially be classified as an executive, administrative, or professional employee and therefore exempt from the Fair Labor Standard Act’s overtime requirements.

The salary threshold was last increased four years ago to its current level of $684 per week or $35,568 annually. USDOL is proposing an increase to $1,059 per week or $55,068 annually, with automatic increases every three years thereafter.

The PA Chamber is carefully reviewing this proposal as similar increases in the past have triggered concerns among nonprofit organizations, higher education institutions, small businesses, and employees who may be forced to transition from salaried to hourly. Read more.

The Columbia Montour Chamber of Commerce is monitoring the salary threshold issue very closely. For a deeper dive, read this recommended additional reading from the U.S. Chamber of Commerce.