Overtime Rule

Overtime Rules

The Department of Labor (DOL) has signaled it wants to raise the salary threshold for overtime eligibility, which was last updated in 2004—though not as high as the Obama administration proposed in 2016. The Obama-era rule would have doubled (to $47,476) the salary threshold under which virtually all workers are guaranteed overtime pay if they work more than 40 hours per week. DOL is currently analyzing comments from stakeholders before proposing a change.

ASAE submitted comments in August 2017 focusing on how potential changes to overtime eligibility would affect associations and other nonprofit employers. As it did with the Obama-era rule, ASAE emphasized that it does not oppose increasing the overtime salary threshold, but that creating a “one-size-fits-all” threshold across the country—regardless of cost-of-living differences—would not be workable for many employers. Based on the federal government’s inflation calculator, ASAE has suggested that an inflation-adjusted minimum salary level of $30,830 would be an appropriate threshold for overtime eligibility.