Insurance Association Says New Overtime Rule Will Not Benefit The Industry

Insurance industry officials are concerned that a new Department of Labor rule relating to overtime will have negative consequences for employers. The rule, which was issued last Tuesday and will take effect in December, raises the salary threshold below which most salaried workers are entitled overtime to $913 per week, or $47,476 annually for full-time workers. The previous threshold was at $455 per week, or $23,660 annually. That level will be revisited every three years, and will be maintained at the 40th percentile of full-time salaried workers. That could move the threshold to more than $51,000 by January 2020, projections say.