U.S. Department of Labor Announces New Overtime Final Rule

September 24, 2019

On September 24, 2019, the U.S. Department of Labor, Wage and Hour Division announced its Final Rule to update the earnings thresholds necessary to exempt executive, administrative, and professional employees from the Fair Labor Standards Act’s minimum wage and overtime pay requirements. This Final Rule, known as the “overtime rule” or “salary threshold,” strikes a balance, increasing the currently enforced annual salary threshold of $23,660 to $35,568. Among other things the Final Rule will also allow employers to count a portion of certain bonuses and commissions towards meeting the salary threshold. The Final Rule becomes effective on January 1, 2020. 

For additional information, planning assistance or implementation questions, please contact Attorney Bill Beach or Attorney Amy Luck.

Here is the U.S. Department of Labor Fact Sheet.

 

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