- RESOURCE LIBRARIES
On September 24, 2019, the U.S. Department of Labor announced a final rule regulating who is eligible for overtime pay under the Fair Labor Standards Act (FLSA).
The final rule updates the salary level necessary to exempt executive, administrative, and professional employees from the FLSA’s minimum wage and overtime pay requirements. The new standard salary level will be $684 per week (equivalent to $35,568 per year for a full-year worker) and is planned to be in effect as of January 1, 2020.
The final rule also raises the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year.
In addition, for the first time, employers will be able to count nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10 percent of the salary threshold.
Employers should take immediate steps to ensure all positions classified as exempt are compensated at least $684 per week as of this date. For positions which are currently receiving less than this threshold, employers should determine whether to increase the position’s salary to at least $684 per week, or plan to change the positon to non-exempt no later than January 1, 2020. (All non-exempt positions must be paid overtime for all hours worked over 40 per week; law enforcement, fire fighters, and hospital employees must be paid overtime based on their established work periods.)
More information about the final rule can be found at: https://www.dol.gov/whd/overtime2019/
DOL Disclaimer: This final rule has been submitted to the Office of the Federal Register (OFR) for publication and is currently pending placement on public inspection at the OFR and publication in the Federal Register. This version of the final rule may vary slightly from the published document if minor technical or formatting changes are made during the OFR review process.
Only the version published in the Federal Register is the official final rule.
Please feel free to contact your HR Business Partner with any questions you may have.