By:  Laurey West, SHRM-CP, Director of Operations

The U.S. Department of Labor announced the final ruling on overtime pay and the new minimum salary threshold.  These will go into effect on Jan. 1, 2020.

Employers should be aware that for employees to be exempt from overtime under the federal Fair Labor Standards Act (FLSA), employees must meet certain duties tests and must be paid a minimum of $35,568.00.  The new salary threshold changes from $455 a week to $684 per week.  The duties tests for administrative, professional and executive employees have not changed.  The new rule may prompt employers to reclassify exempt employees to nonexempt status and raise pay for other employees above the new threshold minimum

In addition, the total annual compensation requirement for “highly compensated employees” will be raised from $100,000 to $107,432 per year.

The Employee Resource Administration, L.P. staff has been working closely with our clients to assist in making the necessary changes to stay complaint with this federal law before the January 1, 2020 deadline.

For more information about this ruling, please visit https://www.dol.gov/whd/overtime/fs17g_salary.pdf.

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