WASHINGTON—The Department of Labor (DOL) has introduced a proposed rule intended to increase the amount of workers eligible for overtime pay by bumping the annual salary threshold from $23,660 to $35,308.
The new proposed threshold is about $12,000 lower than its initial rule.
The DOL's overtime rule was set to take effect Dec. 1, 2016, but was invalidated by a federal judge. In October 2017, the agency appealed the ruling in an attempt to revise the rule and maintain its ability to establish overtime regulations.
The proposed rulemaking no longer includes automatic adjustments to the salary threshold and the department instead will commit to periodic reviews to update the salary threshold. Any update would require notice-and-comment rulemaking, explained NAFCU, which had urged the department to revise the overtime rule with more flexibility and “reasonable benchmarks” to ensure the credit union industry isn't adversely affected by it.
The proposal will be open for comment for 60 days once published in the Federal Register.