Professional Service Agreement

Proposed Overtime Rule Published, Comment Period Open Until May 21

March 25, 2019

The U.S. Department of Labor (DOL) has published the new proposed new overtime rule in the Federal Register. As described earlier, the proposed new rule would: raise the salary minimum for exemption as an Executive, Administrative, or Professional employee to $679 per week ($35,308 per year); allow employers to satisfy up to 10% of the salary minimum through nondiscretionary bonuses, incentives, and/or commissions that are paid annually or more frequently, or even in a catch-up payment at the end of the year; and raise the threshold for exemption as a “Highly Compensated Employee” to $147,414 in total annual compensation. Employers can submit written comments on the proposed rule until May 21, 2019. Comments can be submitted electronically ( or by mail to Melissa Smith, Director of the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S–3502, 200 Constitution Avenue NW, Washington, DC 20210. All comments should identify the proposed rule’s Regulatory Information Number (RIN), 1235–AA20. Following the DOL’s review of the public comments submitted, it will prepare a final rule that may or may not contain changes from the proposed rule. The DOL anticipates that the new rule will be effective in January 2020. SESCO has a long history of ensuring that employers are compliant with federal and state wage and hour requirements. If employers have any questions or concerns about their pay practices, we recommend they contact us to ensure compliance.