January 14, 2019

Proposed federal overtime rule goes to the White House for review

The U.S. Department of Labor has delivered a new overtime rule to the White House's Office of Budget and Management for review, according to HR Dive, which reported on Friday that the proposal would set a much lower threshold than the $47,476 set by the Obama administration in 2016.

The 2016 final rule increased the minimum salary level determining eligibility for time-and-a-half overtime pay from $23,660 per year, or $455 per week, to $47,476, or $913 per week. In Maine, anywhere from 16,000 to 64,000 salaried workers were expected to come under that 2016 rule, according to a state-by-state analysis compiled by U.S. Sen. Elizabeth Warren, D.Mass., but Maine's Department of Labor told Mainebiz at the time gauging the precise number was difficult due to the state's unique overtime statutes that would factor into the eligibility computations.

Implementation of the 2016 final OT rule, however, has been delayed in the courts after the U.S. Chamber of Commerce and other trade associations succeeded in obtaining a permanent injunction blocking the rule.

HR Dive said the OMB's regulatory office has no deadline for its review of the new OT proposal, but cited several law firms confirming DOL's proposed regulations would set the threshold in the low-to-mid-$30,000 range for determining overtime eligibility under the Fair Labor Standards Act.

HR Dive reported that a Notice of Proposed Rulemaking is expected to be published for public comment in the near future, possibly as early as March.

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