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What is the new overtime rule for 2020?
DOL's New Overtime Rule: Effective in 2020. Beginning January 1, 2020, small businesses will have to comply with a new overtime rule, estimated to affect 1.3 million workers. The new rule requires that exempt salaried employees must be paid at least $684 per week, or $35,568 annually.
What is the new federal overtime rule?
Under the Fair Labor Standards Act (FLEA), the new overtime rule raises the pay threshold for exempt workers to $35,568 per year ($684 per week) from its current level of $23,660 per year ($455 per week). This is the first change to the federal minimum salary threshold for overtime pay since 2004.
What does the new overtime rule mean?
The Department of Labor just released the final rule that will require businesses to pay overtime wages to a much larger group of employees if they work more than 40 hours a week. That means they get paid 50 percent extra when they work more than 40 hours in a week. The new rule raises the salary threshold to $35,568.
Is the overtime final rule in effect?
The final rule goes into effect Jan. 1, 2020. Ultimately, more than a million employees will be eligible to receive overtime pay for working more than 40 hours in a week as a result of this change, according to the DOL.
What is the salary cut off for overtime?
Current federal law says most workers making about $23,660 a year are entitled to overtime pay. In other words, to be considered “salaried,” most workers need to make at least that. Starting Jan. 1 next year, that minimum salary threshold will be raised to $35,568.
Is the new overtime rule in effect?
New Overtime Rule Raises Salary Cut-Off to $35,568 Employees who make less than $35,568 are now eligible for overtime pay under a final rule issued by the U.S. Department of Labor (DOL). The new rate will take effect Jan. 1, 2020.
What qualifies as an exempt employee 2020?
Employees who are classified as exempt must receive a salary of at least $684 per week by January 1, 2020. For employees reclassified as non-exempt, make sure you pay them at least the minimum wage for all hours worked and overtime whenever they work more than 40 hours in a workweek.
What qualifies as an exempt employee 2019?
With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. These requirements are outlined in the FLEA Regulations (promulgated by the U.S. Department of Labor).
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