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Make a Plan ‘Right Now’ for $55K Overtime Rule

Article-Make a Plan ‘Right Now’ for $55K Overtime Rule

Kate Tornone/HR Dive Dept of Labor.jpeg
Construction and other companies should know whether they will reclassify workers or raise wages should the Department of Labor finalize its proposal.

t’s time for construction and other companies to devise a plan for coping with a potentially drastic increase to the Fair Labor Standards Act’s overtime threshold, a Cozen O’Connor attorney said Thursday.

Employers should consider “right now” how they would tackle a change that could increase the FLSA’s regulatory salary threshold for overtime eligibility from about $35,000 to about $55,000, Mariah Passarelli, member of the firm, said during a virtual conference.

The U.S. Department of Labor proposed that change in August and is accepting stakeholder comments through Tuesday. Exempt employees paid less than $1,059 per week, which amounts to $55,068 per year, will lose their FLSA exemption if the proposed threshold is finalized, Passarelli explained. If that happens, employers have a few options.

To read the rest of this story from our sister site, HR Dive, click here.

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