By ComplyRight –
On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule that will make 1.3 million workers newly eligible for overtime pay.
Under the new guidelines, the minimum salary threshold increases to $684/week ($35,568 annually), effective January 1, 2020. With very few exceptions, employers must pay time-and-a-half to workers making less than this amount for any hours over 40 per week.
The white-collar duties tests for executive, administrative and professional employees remain the same. This means employees will only be exempt from overtime if they earn more than $35,568 annually and pass one of the existing DOL job duties tests.
Identify Affected Employees
Your first step to prepare for the new rule is to pinpoint employees who may be impacted by the change. (Consider reviewing all employees making less than $40,000 a year since the salary threshold could increase in the future.) If employees making less than $35,568 are already non-exempt or “hourly,” no change is needed. However, if you have employees under the threshold who are exempt or “salaried,” you’ll need to take action. (more…)