Department of Labor Rule Extends Overtime to Over a Million Workers

Posted on Monday, September 30, 2019 12:54 PM

This week, the United States Department of Labor announced a final rule that will allow 1.3 million workers to be eligible for overtime pay under the Fair Labor Standards Act (FLSA).  This will go into effect on January 1, 2020.

This rule will update the earning thresholds needed to exempt employee’s from FLSA, this is the first update to these thresholds since 2004.

“According to this final rule, the Department of Labor will:

  • raise the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • raise the total annual compensation level for “highly compensated employees (HCE)” from the currently enforced level of $100,000 to $107,432 per year;
  • allow employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
  • revise the special salary levels for workers in U.S. territories and in the motion picture industry.”

Source: NAHC

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