DOL Proposes New Rule for Overtime Eligibility

On March 07, 2019, the United States Department of Labor (“DOL”) proposed to increase the salary threshold required for executive, administrative and professional (“EAP”) workers to qualify as exempt from overtime under the Fair Labor Standards Act (“FLSA”).  Once finalized, the DOL rule will convert more than one million workers – earning between $23,660 and $35,308 annually – to non-exempt status and thus eligible to receive overtime pay.  Indeed, the DOL proposal requires employers to pay overtime for EAP workers that earn less than $35,308 per year or $679 per week.

This is the first raise to the minimum threshold for overtime exemptions under the FLSA since 2004.  Under President Obama, the DOL sought to raise the minimum threshold to $47,476 per year, but its’ efforts were blocked from implementation by a Texas federal judge in December 2016.  While the proposed DOL rule falls short of providing the same salary threshold as the 2016 version, it projects to significantly benefit workers in many industries, including education, health services, wholesale trade, retail trade, and manufacturing.

In addition to protections under the federal FLSA, workers in several states, including New York, are protected by State and local laws that ensure overtime pay when employers fail to meet a threshold even higher than the newly proposed DOL rule.  For instance, restaurant employees in New York City must be paid a weekly salary greater than $1,125, or $58,500 per year, to be exempt from overtime.  Workers that believe their employer is improperly withholding overtime wages should speak to an attorney to investigate their claims.

About Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour, personal injury and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Delaware, Georgia and Pennsylvania.

Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.

To schedule a free consultation with our attorneys and to learn more about your legal rights, call our offices today at (877) 247-4292 or (212) 983-9330.

About Patrick J. Collopy

Patrick Collopy's practice is focused on employment litigation. Patrick is an Associate in the firm's New York office.

Tags: faruqi & faruqi, investigation, news, litigation, settlement notice, case, faruqi law, faruqi blog, faruqilaw, DOL, FLSA, Patrick Collopy, New York City, employee rights, faruqiandfaruqi Patrick J. Collopy Patrick J. Collopy
Associate at Faruqi & Faruqi, LLP

New York office
Tel: (212) 983-9330
Fax: (212) 983-9331

Finding us

Our Offices

Our offices are nationwide. If you have any questions about a case or our firm, please contact us.

New York

685 Third Avenue 26th Floor
New York, New York 10017
(212) 983-9330
(877) 247-4292
(212) 983-9331


10866 Wilshire Boulevard Suite 1470
Los Angeles, California 90024
(424) 256-2884
(424) 256-2885


3828 Kennett Pike Suite 201
Wilmington, Delaware 19807
(302) 482-3182
(302) 482-3612


3975 Roswell Rd Suite A
Atlanta, Georgia 30342
(404) 847-0617
(404) 506-9534


1617 JFK Boulevard, Suite 1550
Philadelphia, Pennsylvania 19103
(215) 277-5770
(215) 277-5771

Faruqi & Faruqi office in New York, New York

Faruqi & Faruqi office in Los Angeles, California

Faruqi & Faruqi office in Wilmington, Delaware

Faruqi & Faruqi office in Atlanta, Georgia

Faruqi & Faruqi office in Philadelphia, Pennsylvania