The Department of Labor’s proposed rule increasing the salary threshold for overtime pay was sent to the Office of Management and Budget for review. The update to the Fair Labor Standards Act (FLSA) overtime regulations would mean increased pay for millions of workers in this country whose wages have stagnated.
Long overdue, the salary threshold – now set at $23,660 per year – has not kept up with inflation and, with the exception of 10 years ago, has not changed since 1975. AFSCME applauds progress on this important issue.
While the proposal is not yet public, it is expected also to address the poorly defined “white collar” exemptions included in the FLSA. Vague definitions of what it means to be a professional, executive and administrative employee for FLSA purposes have enabled employers to abuse the overtime exemptions. For example, under current regulations, employers can treat low-income workers as managers, make them work 60-70 hours a week and not pay them overtime.
The next step in the process is for the Labor Department to publish the proposed rule in the federal register and invite public comment.