Employers should expect a change to the U.S. Department of Labor’s overtime rule in May.
The DOL first announced a change would be coming in spring 2022 and has recently expressed the rule change would be made public next month.
The Society for Human Resource Management wrote in March that because of inflation, many states have minimum hourly wage rates that exceed the Fair Labor Standards Act, meaning the threshold for who qualifies for overtime pay could change.
The current threshold with the FLSA is $684 per week, or $35,568 annually. In 2016, the Obama administration attempted to raise that threshold to $913 per week, or $47,476, but a federal judge blocked the rule change.
The SHRM writes that it’s possible the DOL will also expand the duties test, which would make it more difficult to classify certain employees as exempt from overtime pay.