DOL Proposes to Restore and Extend Overtime Protections

The U.S. Department of Labor (DOL) has announced a notice of proposed rulemaking that would restore and extend overtime protections to more than 3.6 million salaried workers.

The DOL’s proposed revision would guarantee overtime pay for most salaried workers earning less than US$1,059 per week, or about $55,000 per year. In addition, the rule will better ensure workers who are not exempt executive, administrative, or professional employees receive additional compensation when working more than 40 hours a week. The DOL’s rule proposes automatically updating the salary threshold every three years to reflect current earnings data and restores overtime protections for all U.S. territories.

“For over 80 years, a cornerstone of workers’ rights in this country is the right to a 40-hour workweek, the promise that you get to go home after 40 hours or you get higher pay for each extra hour that you spend laboring away from your loved ones,” said DOL Acting Secretary Julie Su. “I’ve heard from workers again and again about working long hours, for no extra pay, all while earning low salaries that don’t come anywhere close to compensating them for their sacrifices. Today, the Biden-Harris administration is proposing a rule that would help restore workers’ economic security by giving millions more salaried workers the right to overtime protections if they earn less than $55,000 a year. Workers deserve to continue to share in the economic prosperity of Bidenomics.”

Associated Builders and Contractors (ABC), a national construction industry trade association representing more than 22,000 members, issued a recent statement opposing the proposal. “ABC is disappointed that the DOL is moving forward with a proposed overtime rule since multiple industries, like construction, are still grappling with the lingering economic consequences of inflation, global supply chain disruptions, rising materials prices, and workforce shortages, all of which push operational costs ever higher,” said Ben Brubeck, ABC vice president of regulatory, labor, and state affairs, in the press release.

Upon publication in the Federal Register, the notice of proposed rulemaking will be open for public comment for 60 days. For more information on the proposed rulemaking, visit the DOL’s website.