On September 24th, the U.S. Department of Labor announced a final rule to make 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA).
Here are the highlights:
• Final Overtime Rule will increase the salary thresholds from $455/week to $684/week (goes up from $23,660/year to $35,568/year)
• Employers may apply incentive payments – i.e. non-discretionary bonuses and/or commissions up to 10% of the salary threshold ($35,568/year)
• Does not include changes to the job duties tests
• Highly Compensated Employees ~ Starting Jan 1, 2020, these employees must meet duties test and must earn an annual salary projected to be $107,432.
More information about the final rule is available at: https://www.dol.gov/whd/overtime2019/.