The new rule would make 1.3 American workers eligible for overtime pay under the Fair Labor Standards Act. By issuing the rule the Department aims to:
- raise the “standard salary level” from the currently enforced level of $455 per week to $684 per week (equivalent to $35,568 per year for a full-year worker);
- raise the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year;
- allow employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level, in recognition of evolving pay practices; and
- revise the special salary levels for workers in U.S. territories and the motion picture industry.
This final rule has been submitted to the Office of the Federal Register (OFR) for publication, and is currently pending placement on public inspection at the OFR and publication in the Federal Register. This version of the final rule may vary slightly from the published document if minor technical or formatting changes are made during the OFR review process. Only the version published in the Federal Register is the official final rule.
MNA will be tracking the progression of this rule closely and will provide additional resources and information on how this rule will impact nonprofit organizations in the coming weeks.