The Department of Labor (DOL) issued a “new overtime rule” on September 24 which will take effect on January 1, 2020!  As a result, the new salary threshold is $684/week, which works out to $35,568/year (regardless if previous duties fell under the administrative, executive, and/or professional exemption).  However, this new rule did NOT change the “duties” nor does it mean employees below the threshold get an increase in pay!

The final DOL rule also increases the salary level to $107,432 (of which $684 must be paid WEEKLY) for workers classified as “exempt” from the overtime under the “highly compensated worker exemption”. 

What employers should do…. Employers should analyze the compensation for those who are currently in an exempt category. If an employer determines their exempt employees are not making $684/week or $35,568/year, then the employer should be prepared to:  1) Increase the employee to the new salary threshold or 2) starting January 1, 2020, move the employee to a non-exempt status and begin to pay overtime or 3) think about restructuring their workforce and reclassifying the duties and compensation structure for the employees.

Written by: Erin Henry, Servant Leader/CEO

ITsHRc, LLC assists many employers with compensation analysis and solution initiatives.  Contact us at any time for further information at 937-321-1069