SEMA eNews Vol. 18, No. 28, July 9, 2015

Feds Propose More Lower-Waged Salaried Employees Be Subject to Mandatory Overtime Pay

By SEMA Washington, D.C., Staff

Employers are currently exempt from paying salaried employees overtime if they make more than about $23,660. The Department of Labor (DOL) has proposed increasing this level to about $50,440 per year. The Fair Labor Standards Act (FLSA) establishes federal minimum wage and overtime rules for employees. The rules include exemptions for executive, administrative, professional and other “white-collar” employees. The exemption includes certain minimum qualification tests regarding primary job duties and levels of pay. The minimum pay levels have not been raised in a number of years and have not kept up with inflation since first being established. The DOL’s proposed rule would increase that amount and index it for future annual raises. 

The proposal is now subject to public comment. For more information, contact Stuart Gosswein at stuartg@sema.org.

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