Proposed changes to Overtime Threshold Limit


overtimepayworker2019_01The DOL (Department of Labor) has released a new proposed Overtime Threshold Limit.  The proposal increases the minimum salary required for an employee to qualify for exemption from overtime pay from the current $455/week to $679.00/week.

The proposal also increases the total annual compensation for “highly compensated employees” (HCE) from the current level of $100,000.00 to $147,414.00 / year.

Employers would be able to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10 percent of the standard salary level.

What should you do now?

Evaluate the impact on your business if this is implemented. Steps you can take now to prepare a game plan include:

  • Review your employees’ salary levels AND duties to make sure you are complying with current rules. Do you have any employees who would be newly eligible under this proposal?
  • If so, consider how you want to manage the change. Some options are:
    • Reschedule employees so that they don’t incur overtime.
    • Cut costs elsewhere and budget for more overtime.
    • Hire more employees to spread the work around so that fewer employees have to work overtime.
    • Increase the salaries of certain employees to exceed the new threshold if they often work overtime.


barb.jpgBarb Hammerberg, CCWP has held almost every job that exists in staffing firms, from recruiter to regional director at some of the largest staffing firms in the world. She brings decades of experience and industry knowledge to her role as the Director of Client Development at Advance Partners.


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