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Department of Labor Issues Final Overtime Rule


This past Tuesday, the Department of Labor released the final overtime rule, which will impact over 1.3 million additional workers.

Readers will recall that during President Barack Obama's time in office, the Department of Labor approved a new overtime rule that would have lifted the wage "ceiling" from $23,660.00 to $47,476.00.  That meant that workers that earned less than $47,476.00 per year would have to be paid time and a half whenever their workweek exceeded 40 hours.  Of course, that proposed change to the overtime rule was met with much resistance (including a lawsuit and nationwide injunction) and was eventually shelved, much to the chagrin of employers and pro-business groups.

However, even with that version of the overtime rule being shelved, there was still an appetite to amend the overtime rule.  After much discussion, the new overtime rule approved by the Department of Labor stipulates that any worker that makes less than $35,568.00 per year must be paid time and a half whenever their workweek exceeds 40 hours.  This amended version of the overtime rule has been met with accolades from pro-business groups that have heralded it as a "reasonable update."  Granted, Democrats and pro-employee groups have been critical, pointing out that the version approved during President Obama's time in office would have impacted more than three times as many workers.

Regardless of where you stand on the matter, this new overtime rule set to take effect January 1, 2020 should be viewed as progress.



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