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DOL Releases Overtime Proposal

July 8, 2015

After more than a year of deliberation, the Department of Labor released a 295-page proposal to rewrite federal overtime laws. Click here for the DOL proposal.
Among the changes, the DOL has proposed guaranteeing overtime pay to salaried employees who earn less than $50,440 a year ($970 per week). That's up from the current threshold of $23,660. Under the proposal, the salary threshold would be automatically updated in the future based on inflation or wage growth. The agency did not propose a new "duties test" regarding the responsibilities of exempt managerial employees, but has solicited comments on whether changes are needed.
The National Restaurant Association released a statement on the announcement. Overtime rules are a critical issue for the restaurant industry.
The agency will publish the proposal in the Federal Register. That will kick off a 60-day public comment period. The DOL is targeting next year to release a final rule.