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DOL Issues Final Overtime Rule Changes Effective 1/1/20

Thursday, September 26, 2019  
Posted by: Carrie Cox
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Breaking News!


On September 24, 2019 the Department of Labor issued the final Overtime Rule.   The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from minimum wage and overtime pay requirements last issued in 2004.   


Under the new regulations the “standard salary level” increases to $684 per week which is equivalent to $35,568 per year (up from $455 per week under the old rule).  Employers can include nondiscretionary bonuses and incentive pay including commissions that are paid at least annually to satisfy up to 10% of the standard salary level. The total annual compensation limit for Highly Compensated Employees (HCE) increased from $100,000 to $107,432 per year.  Special rules apply to workers in US Territories and in the motion picture industry.


The final rules issued on September 24th will go into effect on January 1, 2020.  This gives employers 99 days to audit employee compensation and prepare for compliance.


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