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What you need to know about the new overtime rule

November 1, 2019

The Department of Labor (DOL) announced a final rule that allows a much larger pool of employees to earn overtime if they work more than 40 hours per week. Specifically, the DOL raised the salary level for employees who are counted as “exempt” (or unable to earn overtime pay).

According to the DOL (dol.gov) the final rule:

  • Increases the minimum salary requirement from $455 to $684 per week ($35,568 per year) for the administrative, professional (including the salaried computer professional) and executive exemptions.

  • Permits employers to use nondiscretionary bonuses, incentive payments and commissions (that are paid at least annually) to satisfy up to 10 percent of the minimum salary requirement for administrative, professional and executive exemptions.

  • Increases the total annual compensation requirement for the “highly compensated employee” exemption from $100,000 to $107,432 per year (at least $684 must be paid on a weekly salary basis).

The new overtime rule is effective January 1, 2020. Please contact our firm if you have any questions. We are here to help!

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