The U.S. Department of Labor issued a final rule updating the earnings threshold required to be exempt from receiving overtime pay. The new rule is expected to make 1.3 million workers eligible for overtime under the Fair Labor Standards Act (FLSA).
The Final rule implements the following:
- Raises the standard salary level to $684 per week ($35,568 per year for a full-time worker)
- Raises the total annual compensation level for highly compensated employees from $100,000 to $107,432 per year
- Allows employers to use non-discretionary bonuses and incentive payments including commissions paid at least annually to satisfy up to 10% of the standard salary level.
- Revises the special salary levels for works in U.S. territories and in the motion picture industry.
The final rule goes into effect January 1, 2020.
