U.S. Dept. of Labor Issues Final Overtime Rule

Today, September 24, 2019, the U.S. Dept. of Labor issued a final rule updating the 2004 eligibility requirements for overtime pay under the Fair Labor Standards Act (FLSA).

The final rule updates the earnings thresholds necessary to exempt executive, administrative, and professional employees from the FLSA's minimum wage and overtime pay requirements as follows:

  • The "standard salary level" is increased from $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • The total compensation level for "highly compensated employees (HCEs)" is increased from $100,000, to $107,432 per year;
  • Employers are allowed to use non-discretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10% of the standard salary level; and
  • Special salary levels for workers in U.S. territories and the motion picture industry are revised.

The final rule is effective on January 1, 2020.

The text of the final rule, which has not yet been printed in the Federal Register, can be viewed here, along with other related information.