Labor Department Expected to Lower Proposed Overtime Threshold in Final Rule

Employment Law

According to recent media reports, the Labor Department will lower the minimum salary threshold for most exempt employees in its final rule from $50,440 to $47,000.  Although decreasing the proposed salary level threshold will not please unions and other proponents that have pressed for the rule, they appear to be prepared to live with it, according to sources in the labor movement.  Recent letters from Democrats in Congress have voiced concern about the size of the proposed increase and its impact on small businesses.  The union-supported Economic Policy Institute estimates the lower salary threshold would reduce the number of workers likely to be affected by the final rule from 13.5 million to 12.5 million.  A final rule is expected before June, with an effective date as early as sixty days thereafter.