Taking Care of HR Business
        A blog from the attorneys of Verrill

        Breaking: DOL Unveils Proposed Changes to FLSA Overtime Pay Requirements

        by Tawny L. Alvarez on March 8, 2019

        Yesterday, March 7, 2019, the United States Department of Labor (DOL) unveiled a proposal to change the Fair Labor Standards Act (FLSA) as it applies to non-exempt employees eligible for overtime. The proposed change increases the required weekly salary to maintain an exempt position from the current $455 per week to $679 per week (effective January 2020). Currently, the FLSA has a threshold of $24,000 per year for an individual to meet the salary basis test in order to qualify as an exempt employee under the federal FLSA (in addition to meeting the duties test for exemption). In 2016, the Obama administration attempted to increase the salary threshold to $47,476.00. The current proposal instead results in a federal yearly required salary (under the FLSA) of $35,300.00.

        Unlike the previous proposal, the current proposal does not establish any automatic, periodic increases of the salary threshold over time. Instead, the proposal is asking for public comment on how the federal DOL may update the requirement every four years. The last time the salary threshold was increased was in 2004. The new proposal does not vary the threshold level based on geographic location, an issue that many groups had previously identified as creating problems in more rural areas.

        The proposal also increases the Highly Compensated Executive exemption from the current $100,000 per year to $147,414 (effective January 2020). The DOL estimates that the direct cost to employers would total $464.2 million in the first year of the proposed changes and the change in the standard salary level will affect approximately 1.1 million workers in the first year.

        If you have exempt employees who earn less than $35,300 per year, please contact a member of Verrill Dana’s Labor and Employment Practice Group to prepare for this proposed change.

        Taking Care of HR Business

        Human resource professionals, supervisors, and company executives are constantly confronted with a changing legal landscape. Verrill’s Taking Care of HR Business blog is designed to keep you informed about the latest and most significant legal developments that affect employers.

        Key Contacts

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Published Works

        Four Verrill Attorneys Co-Author Massachusetts Trends and Developments Chapter for Chambers and Partners Child Relocation 2026 Guide

        Verrill attorneys Mary H. Schmidt, Rachel A. Deering, Hannah R. Zukoff, and Mariah G. Tappan co-authored the “Trends and Developments” chapter...
        Blog

        A New Protected Class in Maine: Holders of Final Protection Orders

        In the lead-up to Domestic Violence Awareness Month in October, employers may be taking a closer look at how their policies and practices respond to...
        Alerts and Newsletters

        Verrill Secures SJC Victory for Boston Legacy FC in White Stadium Litigation

        Verrill has secured a significant appellate victory for Boston Legacy FC in the litigation challenging the redevelopment of White Stadium in...
        Blog

        Hurry Up and Wait

        This is the third in a series of Verrill blog posts on Maine’s packaging extended producer responsibility (“EPR”) law[1]. In July we reported...
        Media Mentions

        Robert Keach Discusses First Brands Chapter 11 Case in Law360

        Verrill attorney Robert Keach was recently quoted in a Law360 article examining the rejection of First Brands Group's Chapter 11 plan and the...
        Media Mentions

        Cybersecurity and AI Governance: Scott Anderson Featured in Massachusetts Lawyers Weekly

        Verrill Managing Partner Scott Anderson was recently featured in Massachusetts Lawyers Weekly discussing how law firms can build attorney buy-in for...
        Blog

        Section 530A Account Update: ERISA Status of Trump Accounts

        The Department of Labor has issued important guidance addressing whether employer programs that permit contributions to Section 530A accounts (and...
        Press Releases

        97 Verrill Attorneys Recognized by Best Lawyers® 2027, Including Four Named Lawyers of the Year

        AUGUSTA, Maine, BANGOR, Maine, BOSTON, Mass., PORTLAND, Maine, and WESTPORT, Conn., (August 20, 2026) – Verrill is proud to announce that 97...
        Alerts and Newsletters

        SEC’s Proposed “Reg Crypto”: What Founders Need to Know

        Startup founders and emerging-growth companies have a number of options for raising capital under the federal securities laws, including Regulation D...
        Blog

        After 45 Years, the IRS Speaks on DCAP Nondiscrimination Testing – And It’s Good News

        Employers that provide a Dependent Care Assistance Program will be pleased to learn that for the first time in 45 years, the IRS has issued guidance...
        Media Mentions

        U.S. Courts Highlights Annabel Rodriguez’s Journey from Fellow to Mentor

        Verrill attorney Annabel Rodriguez was featured in a recent U.S. Courts article titled “From Fellows to Mentors: Alumni Share Lasting Lessons from...
        Media Mentions

        Robert Keach Discusses Bankruptcy Auction Strategy in Law360

        Verrill attorney Robert Keach spoke with Law360 article examining the complex bankruptcy auction process that resulted in the sale of 23 summer...