July 1st, 2023 | Continuum Advantage

As part of being your comprehensive solution for all things HR, Continuum Advantage has been closely following the developments on the U.S. Department of Labor’s proposed overtime rule. Though initially planned to be released last fall, the update to the overtime provisions in the Fair Labor Standards Act had yet to go into effect..

“The current overtime threshold for white-collar exemptions sits at $35,568 per year, a figure set by the Trump administration in 2019. That threshold was much lower than what the Obama administration's 2016 overtime rule set it as—$47,476—but a federal court in Texas held Obama's rule to be an invalid extension of executive authority.” – Kathryn Mayer, Overtime Rule Reaches White House, Set to Go Through Review1

After these numerous delays, the U.S. Department of Labor signaled their proposed overtime rule was set to be issued in August of 2023. This rule will likely address how to implement exemptions for the Fair Labor Standard Act’s minimum wage and overtime requirements for executive, administrative and professional employees.

As the previous delays indicated this rule is likely more comprehensive instead of a one-time increase to the threshold, Continuum Advantage recommends you make sure to understand how it can affect your business’s operational & compliance costs along with possible litigation risks.

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