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The U.S. Labor Department has announced plans to update overtime thresholds for hourly employees, &ldquo;raising the minimum salary for employees to qualify for Fair Labor Standards Act white-collar exemptions to $35,308 per year,&rdquo; according to an article in <a href="https://www.restaurant-hospitality.com/operations/labor-department-proposes-new-overtime-threshold?utm_source=1851franchise.com&utm_medium=article&utm_campaign=us-labor-department-moves-to-introduce-a-new-overtime-threshold-2709382" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">Restaurant Hospitality</a>.

Under current law, employees whose annual salary comes to less than $23,660 annually, or who earn $455 a week or less, are eligible for &ldquo;overtime based on their job duties,&rdquo; the article said.

&ldquo;The Labor Department&rsquo;s <a href="https://www.dol.gov/newsroom/releases/osec/osec20190307?utm_source=1851franchise.com&utm_medium=article&utm_campaign=us-labor-department-moves-to-introduce-a-new-overtime-threshold-2709382" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">new proposal</a> would update the salary threshold using current wage data, projected to Jan. 1, 2020, and boost the standard salary level to $679 a week (or $35,308 per year). The department said the plan &ldquo;would make more than a million more American workers eligible for overtime,&rdquo; the article said.

This could significantly affect franchisors across segments, as many employees at franchise locations work on an hourly income.

According to the article, Matt Haller, the IFA&rsquo;s senior Vice President of Government Relations and Public Policy, said in a statement, &ldquo;The IFA commends the Department of Labor for issuing a sensible approach to expand overtime eligibility.&rdquo;

Read the full article <a href="https://www.restaurant-hospitality.com/operations/labor-department-proposes-new-overtime-threshold?utm_source=1851franchise.com&utm_medium=article&utm_campaign=us-labor-department-moves-to-introduce-a-new-overtime-threshold-2709382" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">here</a>.

U.S. Labor Department Moves to Introduce a New Overtime Threshold

1851 Franchise

Current wage data and projections of purchasing power could translate to a higher baseline income to legally qualify for overtime pay.

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U.S. Labor Department Moves to Introduce a New Overtime Threshold

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