The Department of Labor is proposing more changes in businesses – this time relating to overtime pay. Their new proposed regulation would raise the salary threshold for employees to be eligible to earn overtime pay by over 50%. Currently, that threshold is at $35,568 per year, and the regulation would raise it to $55,068 per year.
Why it matters: If the salary threshold is increased, employers will have just two options to avoid paying newly eligible employees overtime. They can either raise employee salaries above the threshold, or reclassify impacted employee statuses to being on the clock and non-exempt. To learn more about overtime pay requirements and how this proposed regulation could change them, check out this article from the U.S. Chamber of Commerce.