Beginning December 1, New Overtime Rules Could Affect You
Effective December 1, millions of salaried employees will become eligible for overtime pay under the DOL’s Fair Labor Standards Act (FLSA). If you are unaware of the new rules, you could find yourself paying overtime to employees who, before December 1, were exempt.
Current Overtime Rules
Under current rules, certain categories of salaried executive, administrative, professional and outside sales employees who meet certain job criteria and are paid up to $455 salary per week ($23,660 per year) are exempt from minimum wage and overtime pay requirements. Highly compensated individuals making over $100,000 per year and meet certain other criteria fall under special rules as well.
New Overtime Rules
Beginning December 1, new rules update the salary level at which you must begin to pay overtime to these ‘exempt’ employees to $913 per week or $47,476 annually. The threshold for highly compensated individuals was raised to $134,004.
The new rules also provide for automatic updates every three years beginning January 1, 2020.
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