Biden Administration Releases Proposed Changes to Overtime Rule

Earlier this month, the Department of Labor released its Notice of Proposed Rulemaking altering the overtime pay regulations under the Fair Labor Standards Act. The proposal increases the minimum salary threshold to $55,068, up from the current $35,568. That’s a nearly 55% increase. The proposal also implements automatic increases to the threshold. The threshold will be updated every 3 years and tied to the 35th percentile of weekly earnings of full-time non hourly workers in the lowest-wage Census Region. The comment period is 60 days. AASA (and many other employer organizations) will be requesting an extension as well as filing substantive comments.

A deeper initial read does indicate that the proposal does NOT make any changes to the professional exemption (Which means that teachers and administrators will continue to NOT be eligible for OT). This is something we had advocated; our final response will be further informed by the extent of the estimated impact of the salary cap increase and other smaller changes. Stay tuned to the blog. 

This proposal has been under consideration for a while; AASA joined other national organizations expressing concern for the proposal back in May 2022.