DOL Targeting May for Updated Overtime Rule

After the timeline slipped from last fall, the Department of Labor (DOL) is now anticipating issuing a new rule on overtime pay exemptions in May 2023 that is likely to expand the pool of American workers eligible for overtime pay.

The overtime rule sets a salary threshold used to determine which employees are eligible to receive overtime pay when they work over 40 hours per week.

Associations are among the many business sectors seeking to gauge how new overtime rules would affect their employees’ work schedules and their own payroll expenses. Many, if not most, association employees qualify as exempt from overtime eligibility because their primary duties fall under the executive, administrative and professional (EAP) exemption included in the Fair Labor Standards Act.

Many employment law attorneys predict the Biden administration will raise the salary level threshold but leave the duties test unchanged, but associations and other employers will be closely monitoring the proposed new rule expected this spring.