This article was first published by HR Dive and is republished by CFO.com.
Stakeholders may comment on a proposed overtime rule through Nov. 7, according to a notice published Friday.
The U.S. Department of Labor last week announced plans to increase the salary threshold for overtime eligibility — currently $35,568 — to $1,059 per week, or roughly $55,068 per year. It said in a footnote, however, that the final rule would include a threshold based on the most recent wage data available. Depending on how long the process takes and the calculation used, that could be more than $60,000, according to DOL.
The proposal also adopts automatic increases for the threshold, something the Fair Labor Standards Act regulations do not currently include.
The agency’s proposal was widely expected but also is likely to face pushback from businesses in the form of comments and lawsuits. The U.S. Chamber of Commerce, a business association, has slammed the proposal as “the wrong rulemaking at the wrong time,” citing the broader economic climate.
Despite the likelihood of legal challenges, an employment law attorney told HR Dive employers should conduct an audit now to determine how many employees would be affected by such a rule and how it would respond — whether by raising salaries or converting those workers to non-exempt employees.
Instructions for commenting are available in the Federal Register notice.