August 30, 2023: In a change that could greatly increase the earning capacity and labor cost in the market, the U.S. Department of Labor has announced a proposal to extend overtime wage protections for non-exempt employees making less than $1,059.00 per week. These generally low-salaried employees could see a significant increase in salary if the proposal is adopted.

Read the DOL's press release here.

Currently, the Fair Labor Standards Act provides overtime compensation for non-exempt employees making less than $684.00 per week. The Department of Labor's proposed change has the potential for a monumental increase in the scope of employees that could be guaranteed overtime compensation, if adopted. The Department of Labor estimates a change for about 3.6 million employees.

Essentially, this change could grant heightened economic security to employees for overtime protections if they earn less than $55,000.00 a year. It will also greatly affect businesses and the budgeting process for labor and shift scheduling.

In order to come to this proposal the Department of Labor launched an extensive outreach initiative with employers, workers, union, and other interested parties. Upon publication in the Federal Register, the notice of this proposed rulemaking will be open for public comment for 60 days. All comments are considered before publishing a final rule on a proposal of this sort.