Issue link: http://psai.uberflip.com/i/1181102
W EEKLY EDITION OCTOBER 30, 2019 New Overt im e Rul e Effect ive Ja nua ry 1, 2020 The U.S. Department of Labor (DOL) has announced its long - awaited Final Overtime Rule to update the federal overtime regulations governing which employees are entitled to minimum wage and overtime pay under the federal wage and hour law. These changes affect payment of staff working for companies that are currently considered "exempt" from overtime pay because they are classified as executive, administrative, and professional (EAP) white - collar exemptions. The Final Overtime Rule is effective as of January 1, 2020. In less than 100 days, the Final Overtime Rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees , will increase the standard salary level by almost 50 percent to $684 per week (equivalent to $35,568 per year ) from the current $455/week ($23,660 annually) originally set in 2004. Above this salary level, eligibility for overtime varies based on the applicable job duties tests. Please note that Puerto Rico is not part of the Final Overtime Rule. The Final Ove rtime Rule, will: • Raise the "standard salary level" from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full - year worker); • Raise the total annual compensation level for exemption from minimum wage and overtime requirements for "highly compensated employees (HCE)" from the currently - enforced level of $100,000 to $107,432 per year; • Allow employers to use non - discretionary bonuses and incentive payments (including commissions) that are paid at least annually to sa tisfy up to 10% of the standard salary level, in a 52 - week period; and • Revise the special salary levels for workers in U.S. territories and in the motion picture industry. The Final Overtime Rule does not include changes to the job duties tests nor is t here a provision for automatic adjustments to the salary threshold. The DOL did, however, reaffirm its intent to update the earnings thresholds more regularly in the future through notice - and - comment rulemakings. For more information about the Final Ove rtime Rule, go to http://www.dol.gov/whd/overtime2019 for resources the DOL has made available to employers including a Fact Sheet and Frequently Asked Questions. P AGE 3