May 18, 2016 - 9:00am

DOL Finalizes Overtime Regulation


Executive Director, Labor Policy

The U.S. Department of Labor (DOL) today made available for public inspection its much-anticipated final overtime regulation; it will be formally released on May 23. 

The final rule radically increases the salary threshold under which most employees will be automatically eligible for overtime pay.  The current salary level required for exemption is $455 a week ($23,660 for a full-year employee), which was last updated in 2004, and the new exemption threshold will be $913 a week, or $47,476 per year.

In addition, the change in the salary threshold also includes an automatic adjustment every three years. The adjustment will be tied to the 40th percentile of full time salaried workers in the lowest wage region of the country (currently the Southeast). 

The overtime rule leaves intact the current so-called “duties test” that determines whether or not certain employees are eligible for overtime even if they make more than the new $47,476 threshold amount.  To be eligible for this exemption, an employee’s job duties must primarily involve executive, administrative, or professional duties as defined by DOL’s regulations. 

Further information and news coverage of the DOL overtime regulation can be found here:

DOL Fact Sheet

The Washington Post

The New York Times

Wall Street Journal

Politico

The Hill

About the Author

About the Author

Sean P. Redmond
Executive Director, Labor Policy

Sean P. Redmond is Executive Director, Labor Policy at the U.S. Chamber of Commerce.