Overtime coverage will change over time

Almost lost in all the chatter about the new overtime rule is the fact that it is now indexed and will automatically change every three years. The new salary level is $913 per week ($47,476 per year). This is pegged at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South. Every three years the salary level will change as the earnings of full-time salaried workers change. The new total annual compensation level for highly compensated employees (HCEs) is $134,004. This is pegged at the 90th percentile of earnings of full-time salaried workers nationally. Historically, changes in the salary levels have been infrequent and bound up in political wrangling. Each time there was a change, it required a new regulation – with all the heavy bureaucracy and political maneuvering that goes with it. Over the past four decades (!) the salary level was changed only once.