Proposed Legislation Would See More Employees Eligible for Overtime

Gordon Law Group

New legislation has been proposed that would increase the minimum salary basis level that employers need to pay as part of the requirements to avoid the overtime rules. Workers classified as executive, administrative or professional employees would have their weekly minimum pay more than doubled, and the floor for highly-compensated employees will increase too, by 25%.

Currently, executive, administrative or professional employees must earn a minimum of $455 per week (base salary) to be excluded from overtime rules. However, in the next three years the new proposal would incrementally increase that floor to a minimum of $1,090 per week, or else overtime must be paid.

Similarly, the floor for highly-compensated employees would be raised to $125,000 per year. This is an increase from $100,000 and would be periodically indexed for inflation.

If you have any questions about the legislation or any other overtime questions, contact us today.

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