Department of Labor OT Rules

For the past several years, the U.S. Department of Labor has tried to release new rules that would change who must be paid overtime, but those attempts have been met with significant pushback. Two months ago, the department released its latest Notice of Proposed Rulemaking which proposes an increase to the salary threshold from the current $23,660 to $35,308 for certain executive, administrative and professional employees.

Currently, under the Fair Labor Standards Act, most workers must be paid overtime for working more than 40 hours a week. However, under the “white collar” exemption, employers don’t have to pay overtime to employees who earn above a salary threshold (currently $23,660) and who meet certain job duties criteria for administrative, executive and professional employment.

The change would take effect on January 1, 2020 and impact an estimated 1.1 million workers nationwide.

The National Association of Counties has released a full analysis of the rule, which you can access HERE.

The new rule has the potential to impact counties and cities significantly. Local governments employ more than 180,000 people throughout the Commonwealth.

Average annual pay for local government employees in Kentucky was $39,980 in 2017 and the average was higher than the new threshold of $35,308 in about two-third of counties in the state.

Counties are encouraged to submit comments about potential impacts this rule could have for local governments. Submit your comment here.