DOL releases new overtime threshold: Key info for payroll Ready to jump from $23,660 to 35,305 per year? Finally! After several delays, the Dept. of Labor (DOL) has announced a proposed OT threshold. In a new Notice of Proposed Rulemaking, the DOL set an updated standard salary level to determine who must be paid overtime. If the final rules goes into effect, the new threshold will be $679 per week, or $35,308 per year. If employees earn at least that much, and they pass the job duties test, they’ll be exempt from overtime. Details of changes The latest threshold was developed after several rounds of feedback, including six in-person listening sessions about the rule hosted by the DOL and over 200,000 comments from stakeholders on the agency’s initial Request for Information. While the new figure doesn’t match the update to the overtime threshold proposed during the Obama Administration, the standard salary level would be significantly higher than the present threshold. Currently, the OT threshold is $455 a week (23.660 a year). It’s been at this level since 2004. In the future, it may not take as long for the DOL, to update the salary level. Per the notice, the agency’s make a commitment to periodically review the overtime threshold and update it as necessary. There would be adequate notice of the proposed rule and an additional comment period before another update is considered. Note: Besides the new overtime threshold, the notice to the total annual compensation for “highly compensated employees’ (HCEs). Next steps Since the DOL’s still taking comments on the proposed overtime threshold there’s plenty of time for Payroll to prepare for the change. Start by reviewing everyone’s salary so you’ll get an idea of how many more people could soon be eligible for OT. Then, you’ll want to meet with other finance pros and crunch the numbers to get an idea of the impact this’ll have on the business. Cite: