DOL to Update Overtime Rules

June 11, 2021

Labor Secretary Marty Walsh announced in a House hearing that DOL is reviewing whether to update the salary threshold below which all employees are automatically eligible for overtime pay.

The current overtime salary threshold is “definitely” too low, Walsh said.  “Literally, as we speak, we have people at the Department of Labor working on that.”  President Biden has indicated he would make increasing the salary level a priority in his administration.

The current annual overtime eligibility salary threshold of $684 per week or $35,568 per year, was set by the Trump administration on January 1, 2020.

Secretary Walsh also said the DOL will consider providing automatic increases to the salary level.

Outlook:  Congressional Democrats have been encouraging the DOL to significantly increase the salary threshold, but Secretary Walsh has provided no other details on what might be in a proposed rule regarding changes to the duties tests.  He did not reveal a timeline regarding when the DOL review would be completed.