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And Another Thing...
On July 6th, the Department of Labor (“DOL”) issued a Notice of Proposed Rulemaking which would change, among other things, the salary exemption limit for overtime. The current rule (put in place in 2004) states exempts employees with salaries of at least $455 a week ($23,660 a year) and who perform executive, administrative, professional, outside sales and computer duties can be exempted from overtime regulations.  The proposed rule would raise the salary exemption level to the 40th percentile of weekly earnings for full-time salaried workers. The new threshold would be nearly double the old. It is estimated that the new rule will put the threshold close to $970 per week ($50,440 per year). The new DOL rule would also include an annual adjustment to the threshold. The DOL estimates that 4.6 million workers will be newly qualified for overtime in the first year of this new rule, and the average annualized direct employer costs would total around a quarter of a billion dollars per year.

The comment period for the proposed rule ends on September 4, 2015, and a final rule will be issued sometime after September 4th and take effect 30-90 days from issuance. This means there is a high probability that the final rule will begin to effect employers as early as 2016, so employers should update their overtime policies and revisit employee classification as soon as possible to comply with the eventual rule. 

What should you do now? Let your Federal Legislators know how this rule will affect your business by calling them today or visit (click here) the comment site to voice your concerns.

Please call the RC Kelly Law Office (215-896-3846 if you need more information about this proposed rule change.

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