Will We See New FLSA Rules Soon?

By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services
Published February 5, 2019

overtime rulesThe U.S. Department of Labor is moving closer to releasing its proposed changes to the Fair Labor Standards Act’s (FLSA) overtime rules. Holding true to their latest deadline, the Department of Labor plans to release a proposed rule in March 2019. 

The FLSA overtime rules have been in limbo for years. The current overtime rules include a salary threshold of $23,660 ($455 per week), despite efforts by the Obama administration to raise it to $47,476. 

Since taking office, President Trump has shown support for raising the FLSA salary threshold, but not to the level previously proposed. President Trump has asked the Department of Labor to once again revise the FLSA overtime rule, under his guidance.

The Department of Labor has put pen to paper, and a newly updated overtime rule has officially made its way to the Office of Information and Regulatory Affairs (OIRA), a division of the Office of Management and Budget. OIRA is responsible for reviewing significant regulations before publication. Typically, the agency completes their assessment within 90 days, but extensions are often requested and granted.

OIRA has the authority to return the rule to the Department of Labor for reconsideration, should it not appear consistent with President Trump’s policies and priorities. If OIRA declares the proposed rule as acceptable, the rule will be released and a public-comment period of 60 days will commence.

So, what can we expect to see in the new FLSA overtime rule? The Department of Labor has been very tight-lipped. Most certainly, we can expect the new rule will include an updated minimum salary threshold. Based on previous statements made by Secretary of Labor Alexander Acosta, the new proposed minimum salary level is expected to be in the low $30,000 range. Can we expect new and/or revised language for the duties test? Most signs point to no.

HR Source is committed to providing updates on this topic.  Stay tuned for further news on the proposed FLSA rule. Members with questions can contact us at 800-448-4584 or hotline@hrsource.org.

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