DOL PROPOSES CHANGE TO OVERTIME RULE; INCREASES SALARY THRESHOLD
As we have been advising for the last several years, the Department of Labor has been considering an update to the overtime threshold under the Fair Labor Standards Act. Many anticipated we would see the change sometime this year.
On March 7, 2019, the Department of Labor issued its proposed rule which, if adopted, would raise the minimum salary threshold to $679 per week ($35,308 per year). Currently, the minimum salary threshold is $455 per week ($23,660 per year).
The proposed update is about where everyone expected the overtime threshold to land and a vast improvement in the minds of employers from the minimum threshold proposed under the Obama Administration ($913 per week or $47,476 per year). But what’s next?
There is no need for employers to begin making changes to their compensation structure just yet. Remember, this is just the proposed rule change. There is plenty that could happen between now and when the rule gets finalized.
Now is a good time for employers to evaluate where their organization stands and how their compensation structure may change (or may not) when the final rule is adopted. Likely there are many employees who would now fall below the salary threshold and would be entitled to overtime compensation.
More information about the proposed rule is available at www.dol.gov/whd/overtime2019. The Department of Labor encourages interested members of the public to submit comments about the proposed rule electronically at www.regulations.gov, in the rulemaking docket RIN 1235-AA20. Once the rule is published in the Federal Register, the public will have 60 days to submit comments for those comments to be considered.
Not sure if you have classified your employees correctly? Misclassification of employees as exempt is one of the most common violations. The salary threshold is just part of the equation and it’s usually the easiest part to meet. Where many employers get into trouble is with the job duties test. Regardless of what the final rule says about the salary threshold, employers should make sure they meet the other (often forgotten) requirement. Need help? Nevada Association of Employers (NAE) provides a helpful checklist to assist members with making the determination whether an employee is exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA) or not.
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Nevada Association of Employers (NAE) has compiled a collection of commonly used HR forms, checklists, policies, and employer guides to help Nevada businesses manage workplace compliance and HR administration.
Whether you are looking for an employment application, employee file checklist, payroll deduction form, performance appraisal form, or FLSA exemption worksheet, NAE provides resources designed to support employers with day-to-day HR operations.
These tools help employers maintain consistent documentation practices and ensure workplace policies align with federal and Nevada employment regulations.
Employers who need additional guidance on HR compliance may also benefit from services such as HR Hotline support or professional HR audits, which help identify potential compliance gaps before they become legal issues.
Access HR Forms Through the Member Portal
NAE members can access these HR resources through the Member Portal (login required). The portal includes downloadable HR forms, customizable policies, and other templates that help employers manage employee documentation and HR procedures efficiently.
These resources are designed to work alongside other NAE compliance tools, including the HR Compliance Checklist and Employee Handbook Review services that help employers maintain legally compliant workplace policies.
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Need a Form or Resource Not Listed?
If you don’t see the HR resource you need, NAE’s HR professionals and employment law attorneys are available to help.
Members can request guidance or customized resources through services such as Legal Hotline or employment legal services, which provide expert advice on workplace compliance and HR documentation.
Contact Nevada Association of Employers to speak with our team about your HR needs.
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