September 1, 2023 – The U.S. Department of Labor issued a proposal this week to increase the minimum salary threshold for overtime eligibility under the Fair Labor Standards Act to $1,059 per week or $55,068 per year.  The current amount, which has been in place since 2019, is $35,568, so this represents more than a 50% increase.  The proposal would also increase the total annual compensation requirement for highly compensated employees to $143,988 per year, as well as outline an automatic update provision for future increases.  Once the proposal is published in the Federal Register, it will be subject to a 60-day public comment period, so if this were to take effect, it will not be until 2024.

The full proposal can be found here.

Article by Paymaster