Beginning, Jan. 1, 2020, new salary thresholds from the U.S. Department of Labor to determine whether workers must be paid overtime will go into effect.
The “white-collar” exemption from overtime pay will rise to $684 per week, or $35,568 per year.
Announced in September 2019, the Final Rule also raises the salary threshold for highly compensated employees who are exempt from Fair Labor Standards Act overtime pay requirements from $100,000 per year to $107,432 per year and allows employers to satisfy up to 10 percent of the standard salary level by using non-discretionary bonuses and incentive payments.
The Labor Department said it intends to propose updates to the salary and compensation levels on a regular basis, to ensure that these levels provide useful tests for exemption. Federal authorities say the new rule is expected to make 1.3 million American workers newly eligible for overtime pay.Back to All News