Proposed Wage and Hour Changes That Should Be on Your Radar
March 21, 2019
DOL Proposes an Increase to the Salary Threshold for Overtime Exemptions
Federal overtime provisions in the Fair Labor Standards Act (“FLSA”) require that employers must provide overtime pay for hours worked over 40 in a workweek unless an overtime exemption applies. For an exemption to apply, an employee’s job duties and salary must meet certain minimum requirements. The minimum salary for the so-called “white-collar exemptions” – some of the most commonly used exemptions – is currently set at $23,660 on an annual basis.
On March 7, 2019, the Department of Labor proposed a new $35,308 salary threshold for the FLSA’s white-collar exemptions from overtime pay. The DOL declined to propose any changes to the job duties test. Additionally, the proposed rule increases the minimum salary threshold for “highly compensated employees” from $100,000 to $147,414. The proposed rule also suggests periodic review of the minimum salary threshold, but does not require automatic adjustments.
It remains unclear when this rule will become final and go into effect. The proposed rule is still awaiting publication in the Federal Register. The DOL will accept public comments for 60 days after publication. We will keep you posted on any further developments.
Pay Data Reporting Resumes
Earlier this month, a federal judge reinstated the Equal Employment Opportunity Commission’s (“EEOC”) pay data reporting requirement for employers. Private employers with more than 100 employees and all federal contractors with 50 or more employees (and a federal contract worth more than $50,000) must disclose employment data by submitting an EEO-1 survey to the EEOC. Under the Obama Administration, the EEOC planned to release a revised EEO-1 survey to include additional pay data than historically required. In August 2017, the Trump Administration’s Office of Management and Budget placed an indefinite stay on the EEOC’s pay data collection requirement to review the burden on employers. The judge’s ruling lifts the stay and now employers’ pay data collection must resume.
It remains unknown how this decision or further potential legal challenges will impact the 2018 pay data reporting requirements. This week, a federal judge ruled that federal agencies must notify employers by April 3, 2019, whether they will be required to submit employee pay data. At this time, the 2018 EEO-1 survey submission deadline remains May 31, 2019, so employers should prepare to file accordingly until further guidance is provided. We will keep you posted as this story continues to develop.
If you have any questions about this Alert, please contact a member of the Shulman Rogers Employment and Labor Law Group or the Shulman Rogers attorney with whom you regularly work.
The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.