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

        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

        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...
        Media Mentions

        Martha Gaythwaite Featured in Portland Press Herald Coverage of Sig Sauer Trial Victory

        Verrill attorney Martha Gaythwaite was highlighted in media coverage of a federal trial in Bangor involving firearm manufacturer Sig Sauer. As...
        Media Mentions

        Law360 Quotes Robert Keach on Senate Bill Affecting Small Business Restructurings

        Verrill attorney Robert Keach was recently quoted in a Law360 article discussing federal legislation that would permanently restore the $7.5 million...
        Alerts and Newsletters

        SAFEs and Preferred Stock – Key Deal Terms Every Founder Should Know

        SAFEs Before negotiating a term sheet for preferred stock, many early-stage companies, particularly at the seed stage, first raise capital through...
        Press Releases

        Verrill Welcomes Business Restructuring and Insolvency Attorney Nimra Tariq

        BOSTON, Massachusetts – Verrill is pleased to announce that Nimra Tariq has joined the firm’s Business Restructuring and Insolvency Group as an...
        Media Mentions

        Robert Keach Provides Commentary on First Brands Restructuring in Law360

        Verrill attorney Robert Keach was quoted in the Law360 article, "First Brands' Ch. 11 Plan Revives Angst Over Admin Claims," discussing First Brands...
        Press Releases

        Verrill Welcomes Construction Attorney Cassie Dufon

        PORTLAND, Maine – Verrill is pleased to welcome Cassie Dufon to the firm’s Construction Group as an Associate, resident in the firm’s Portland...
        Press Releases

        Verrill’s Wide-Ranging Private Wealth Law Practice Recognized in 2026 Chambers and Partners High Net Worth Guide

        BANGOR and PORTLAND, Maine and BOSTON, Mass. – Verrill attorneys Kenneth P. Brier, Anya F. Endsley, Kurt E. Klebe, Mary McQuillen, Nathaniel S....
        Blog

        Update on Status of Maine Packaging EPR

        In December 2024, Verrill published a blog post, Unwrapping Maine's Gift to the Environment: A New Packaging Stewardship Program Set to Launch in...