Busy DOL proposes new rules on regular rate of pay, joint employment

The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) has been busy. In April 2019, we reported the DOL had proposed changing the salary level of exempt executive, professional, outside sales, and computer employees from $455 per week ($23,660 per year) to $679 per week ($35,308 per year) (see "U.S. DOL's overtime 'do-over'" on pg. 3 of that month's issue). On March 29, the agency announced a new proposed rule changing the "regular rate of pay" definition that will "confirm" the exclusion of certain compensation and benefits when calculating overtime for nonexempt employees under the Fair Labor Standards Act (FLSA). A few days later, on April 1, the DOL announced a new proposed rule affecting joint employers. How will the two newest proposed rules, if approved, affect New York employers?

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