Labor Department seeking comments on overtime rule

US-dept-of-laborThe U.S. Labor Department is seeking comments on potential changes to the Obama administration’s overtime rule. The rule was finalized last year, and it—among other things—guaranteed overtime pay for employees working more than 40 hours per week and earning up to $47,476 per year.

However, after 21 states and special interest groups sued, a federal judge blocked the rule from taking effect.

The rule also set the total annual compensation requirement for “highly compensated employees” to the annual equivalent of the 90th percentile of full-time salaried workers nationally, which is currently $134,004. Additionally, the rule requires automatically updating the salary and compensation levels every three years, and amends the salary basis test to allow employers to use non-discretionary bonuses and incentives.

Current Labor Secretary Alexander Acosta has said that he will examine the rule and seek to lower the salary thresholds.

The request for comment was published in the Federal Register last week. Comments are due by Sept. 25.

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