In September, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay. This new rule will formally rescind the 2016 rule previously blocked by courts. The final rule is effective on January 1, 2020.
The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/commissions towards meeting the salary level. The new thresholds account for growth in employee earnings since the thresholds were last updated in 2004.
In the final rule, the Department is:
More information is available on Department’s website here.
As always, please reach out to your Whalen advisor for assistance if you have any questions on how this may affect you or your company.