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Human Resources

Restoring Overtime Pay Act of 2023: What you need to know.

 

Hey Compliance Warriors!

 

We are getting closer to seeing action on the much-anticipated increase to the salary threshold for overtime-exempt employees.

 

On Wednesday, the Restoring Overtime Pay Act of 2023 was introduced into both House and Senate would increase the salary threshold for exempt workers over the next 4 years and possibly beyond. https://www.brown.senate.gov/imo/media/doc/overtime_reform_bill_2023.pdf

 

If the bill becomes law in 2023, the salary level for overtime-exempt workers would immediately jump to $45,000 per year, which is about $865 per week. The current requirement is $684/week.

The salary level would then increase by $10,000 in January 2024, 2025, and 2026, when it would reach $75,000 per year.

 

Beginning January 1, 2027, the salary level would increase again to an annualized amount equal to the rate of the 55th percentile of weekly earnings of full-time salaried workers nationally, as determined by the Bureau of Labor Statistics based on data from the second quarter of 2026.
 

The legislation reads:

“By phasing the overtime salary threshold back up to the 55th percentile of earnings of full-time salaried workers nationally—which after adjusting for inflation is projected to translate to an annualized amount of $73,551 in 2021 and $82,745 by 2026 (roughly the level of the boldest State overtime threshold increase)—the United States can restore overtime protections to historic levels,”.

We are STILL WAITING for the DOL to issue their proposed rule for increasing the salary threshold for overtime-exempt workers. So, get ready Warriors! Change is coming. Start crunching the numbers and be prepared to determine whether employees will receive the new salary or will be reclassified to hourly plus overtime.

 

There are hard conversations ahead for many.

 

Take care. I will keep you posted!

Be Audit-Secure!

 

Lisa Smith, SPHR, SCP
EEOC Certified EEO Investigator

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Lisa Smith, SPHR, SHRM – SCP

Certified EEO Investigator (EEOC)

Lead Support and Content Chief – HelpDeskforHR.com

“You cannot be audit-proof, but you can Be Audit-Secure.”

The post Restoring Overtime Pay Act of 2023: What you need to know. appeared first on Your HelpDesk for HR .

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