Beginning January 1, 2020, the rule determining how employers must calculate and provide overtime pay to executive, administrative, professional, outside sales and computer hourly employees is significantly changing for the first time since 2004.
This new rule affects these white-collar employees by changing the minimum salary required in order to qualify as exempt under the Fair Labor Standards Act (FLSA). You can read the memo here.
This change is significant because by the Department of Labor’s own estimate, approximately 1.3 million additional U.S. workers will be eligible for overtime pay beginning in January when the new rule is implemented.
If this rule affects you, here’s what you need to know:
- The minimum salary level for exempt employees is being raised from $455 to 684 per week (calculated annually, the level is being raised from $23,660 to $35,568)
- If you qualify for the “highly qualified employee” exemption, the minimum salary level is being raised from $100,000 to $107,432 annually
- Employers may use non-discretionary bonuses and commissions to meet up to 10% of an employees compensation
- The duties test remains unchanged
If this change affects you, it’s imperative that you know whether your employer is properly categorizing you as exempt or non-exempt and that you’re being properly paid all overtime owed. Always keep track of your hours worked, just in case there is a discrepancy.
If you have a wage dispute with your employer, don’t wait to speak to an attorney. Browne House Law Group is a full service law group ready to handle your case.