Will DOL salary proposal bring new posters? Maybe
On August 30, the U.S. Department of Labor (DOL) announced that it will be proposing a rule to increase the required salary level for employees who are exempt from overtime pay under the Fair Labor Standards Act (FLSA).
The agency says the proposed rule will:
- Increase the FLSA regulations’ standard salary level from $35,568 per year to $55,068 per year,
- Increase the total annual compensation requirement for highly compensated employees from $107,432 per year to $143,988 per year,
- Restore overtime protections for U.S. territories, and
- Automatically update earnings thresholds every three years.
The salary level changes in the proposed rule are unlikely to bring about a mandatory change to the Employee Rights Under the Fair Labor Standards Act posting. There is a small chance, however, that changes being made to provisions for U.S. territories will impact the poster.
What won’t change?
The poster notes that certain occupations and establishments are exempt from the FLSA’s overtime pay provisions, but does not provide details on salary levels or overtime exemptions. Information about overtime pay and exemptions on the poster will not need to be updated due to the proposed rule.
What might change?
The proposed rule makes some changes to exemptions for workers in American Samoa, the Commonwealth of the Northern Mariana Islands, and the Commonwealth of Puerto Rico. The FLSA poster contains general information about these territories, noting that special provisions apply to workers in these locations.
If the final rule eliminates all special provisions for these territories, the DOL may remove this information from the poster. This would result in a mandatory posting change.
Does the proposed rule mention a posting update?
The proposed rule does not mention a poster update. In addition, it does not include the cost of a poster change in the expenditures section.
When will the rule take effect?
This proposed rule must go through several steps before taking effect:
- After the rule is published in the Federal Register, the DOL will accept public comments for 60 days.
- The DOL will review and consider all the comments, which could take several months.
- The DOL will publish a final rule and announce an effective date.
Due to the time needed for publication of the proposed and final rule, and consideration of comments, it likely will be at least six months, and possibly a year, before the final rule takes effect.
Key to remember: There is the possibility that proposed changes to the FLSA will bring a mandatory posting change. Employers should watch for updates and be ready to comply once the final rule takes effect. While they should begin preparing, there is no reason to panic. It will be months before any changes are finalized.