Last Update :3/18/2019

DOL Issues New Proposed Overtime Rule

DOL Issues New Proposed Overtime Rule

As we expected, the Department of Labor issued their proposed new overtime rule on March 7, 2019, which raises the minimum salary threshold for workers to qualify for the white-collar exemption. Positions in your golf business may be affected by this proposed rule.

Under current law, employees with a salary level below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week. The new proposed rule boosts the standard level to $679 per week ($35,308 annually). The new rule also increases the total annual compensation for "highly compensated employees" from $100,000 to $147,414 per year.

Employers would also be able to count nondiscretionary bonuses and incentive payment, including commissions, to satisfy up to 10% of the salary-level test under the currently proposed overtime rule, provided the bonuses are paid annually or more frequently.

There were no changes proposed to the duties test that is used to determine the applicability of the white-collar exemptions.

This latest proposed rule is much better than the previous rule (which proposed an increase to the threshold to $47,476 annually). This rule will now be placed on the Federal Register for publication and the public will be permitted a 60-day comment period.

Please share how this rule affects your business; you can add your comment here, or email me directly at NGCOA will be working with our allies within the WE ARE GOLF (WAG) coalition to prepare comments from the golf industry and the impact to your business is important for us to understand. WAG comments will eventually be shared with our members.

Ronnie Miles
Director of Advocacy
Daniel Island SC

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