The U.S. Department of Labor's proposed overtime rule change, which seeks to increase the minimum salary threshold for overtime eligibility to $55,068 per year, carries significant potential costs and hurdles for businesses. The proposal would extend overtime eligibility to around 3.6 million workers and include an automatic update which could lead to regular increases, further exacerbating costs over time.
Yet, the rule's path to implementation is far from certain. Similar proposals have faced successful legal challenges and business advocates have already expressed that lawsuits challenging the proposal are likely. For any company with large numbers of employees below the salary cap, directing HR to assess the cost of the rule given current overtime levels is prudent.
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