Policy Backgrounder: DOL Proposes Rule Expanding Overtime Regulations
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DOL Proposes Rule Expanding Overtime Regulations

September 15, 2023

The Department of Labor (DOL) released a proposed rule for public comment that seeks to lift the income eligibility thresholds for some salaried workers working beyond 40 hours per week to receive time-and-a-half overtime pay.

  • The standard salary threshold for exemption from overtime pay requirements would be raised 55 percent from its current level ($684 per week for most workers) to $1,059 per week ($55,068 per year), while the level for “highly compensated” workers would be raised by one-third from its current $107,432 to $143,998.
  • DOL expects the rule change would transfer $1.2 billion of direct costs from employers to workers in the first year, predominately from higher overtime premiums and pay raises to maintain workers’ exempt status.
  • Once finalized, the proposal is expected to face legal challenges similar to those which derailed a similar Obama Administration proposal in 2017 and also possibly directed at the extent of DOL’s rulemaking authority.

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Authors

Dr. Lori Esposito Murray

Dr. Lori Esposito Murray

Senior Fellow for National Security & Managing Director of CEO Programs

Read BioDr. Lori Esposito Murray

Mitchell Barnes

Mitchell Barnes

Economist

Read BioMitchell Barnes

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