---
title: "U.S. Labor Department Moves to Introduce a New Overtime Threshold"
url: https://burnaze.com/article/ebcce513-6ac8-4ebe-adf1-01fb4600c1b2
source: "1851 Franchise"
original_url: https://1851franchise.com/us-labor-department-moves-to-introduce-a-new-overtime-threshold-2709382
category: "Regulation"
topics: ["Regulation & legal","Operations"]
published: 2019-03-11T22:17:45.000Z
modified: 2026-11-01T02:33:15.627Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/66e3464bac5eabffe698fb00bef3fbb61041.jpg
---

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

**TL;DR:** The U.S. Labor Department plans to update overtime thresholds for hourly employees, raising the minimum salary for Fair Labor Standards Act white-collar exemptions to $35,308 per year. This change could significantly affect franchisors across segments, as many employees at franchise locations work on an hourly income.

*originally published in 1851 Franchise on 2019-03-11. [Read the original](https://1851franchise.com/us-labor-department-moves-to-introduce-a-new-overtime-threshold-2709382).*

## Story

The U.S. Labor Department has announced plans to update overtime thresholds for hourly employees, “raising the minimum salary for employees to qualify for Fair Labor Standards Act white-collar exemptions to $35,308 per year,” according to an article in Restaurant Hospitality.

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 “overtime based on their job duties,” the article said.

“The Labor Department’s new proposal 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 “would make more than a million more American workers eligible for overtime,” 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’s senior Vice President of Government Relations and Public Policy, said in a statement, “The IFA commends the Department of Labor for issuing a sensible approach to expand overtime eligibility.”

## Entities

- 1851 Franchise (publication)
- General (sector)
- IFA (company)
- Matt Haller (person)
- labor law (topic)
- franchisors (topic)
- U.S. Labor Department (regulator)
- hourly employees (topic)
- overtime threshold (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/us-labor-department-moves-to-introduce-a-new-overtime-threshold-2709382). Summarized by Burnaze (https://burnaze.com/article/ebcce513-6ac8-4ebe-adf1-01fb4600c1b2).