The U.S. Department of Labor (DOL) has released a final rule that raises the salary threshold for exempt employees from $23,660 to $35,568, changing overtime eligibility under the Fair Labor Standards Act (FLSA) for over one million workers throughout the United States.
The new rule also “raises the threshold for highly compensated employees from $100,000 a year to $107,432” per year.
As explained by SHRM:
“To be exempt from overtime under the federal Fair Labor Standards Act (FLSA), employees must be paid a salary of at least the threshold amount and meet certain duties tests. If they are paid less or do not meet the tests, they must be paid 1 1/2 times their regular hourly rate for hours worked in excess of 40 in a workweek.”
Experts recommend that employers review compensation and job descriptions for exempt employees earning below the new thresholds now to prepare for the January 1st changes.
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The information included in this blog post originally appeared in an article from SHRM on September 24, 2019 written by Lisa Nagele-Piazza.