Final DOL Rule Doubles Min. Salary For Managers Who Don’t Get OT

Final DOL Rule Doubles Min. Salary For Managers Who Don’t Get OT

Full-time managers whom employers assert aren’t entitled to overtime pay for overtime work would have to be paid at least $913 a week (which comes to $47,476 per year), under a U.S. Labor Department final rule scheduled to be released today. The old minimum salary was $455 per week, which comes to $23,660 a year.

The rule is scheduled to go into effect Dec. 1, 2016. In addition, the rule calls for automatically updating the salary threshold every three years, based on wage growth over time, the Labor Department said.

The increased minimum would add 4.2 million workers to the numbers of employees eligible for overtime pay for overtime work, the Labor Department said.

President Obama said in an email yesterday: “For generations, overtime protections have meant that an honest day’s work should get a fair day’s pay, and that’s helped American workers climb the ladder of success. That’s what middle-class economics are all about. But after years of inflation and lobbyists’ efforts to weaken overtime protections, that security has eroded for too many families.”

The rule has been heatedly opposed by industry, which has argued it could be a very big burden on small business. Industry plans to, at the very least, push Congress to pass already-introduced legislation that would block the rule and order the Labor Department to better analyze how the change would affect small businesses, small governmental jurisdictions and nonprofit employers. Industry has criticized the methodology used to come up with the new minimum figure, pointing out that, among other things, it doesn’t take into account regional economic differences.

-Vincent Taylor, vtaylor@opisnet.com

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