As the eyes of the nation are focused on what we could call an interesting campaign for the White House, it is worth noting that there is still a current administration in the White House, and if the history of recent departing presidents holds true, the last few months will be filled with regulatory action. While many issues are worth monitoring, including the finalization of the U.S. Department of Energy’s (DOE’s) furnace proposal and U.S. Environmental Protection Agency’s (EPA’s) action on the Significant New Alternatives Policy (SNAP) Program and Section 608 certification, it is the U.S. Department of Labor (DOL) that I believe will have the biggest impact on businesses.
Sometime this summer, DOL is expected to finalize a rule that will change the salary threshold for which overtime-exempt employees are paid. Currently, the minimum amount a salaried employee can earn is $23,600 per year, or $455 per week. DOL’s proposal seeks to raise that amount to $50,440 per year, or $970 per week. Additionally, the new rule would also permanently link the overtime threshold to the 40th percentile earnings for full-time salaried workers. This means the overtime threshold would increase every year going forward.