The United States Department of Labor (DOL) finally unveiled its long-awaited overtime exemption rule today, September 24, 2019.
Effective January 1, 2020, the new minimum salary threshold for "white collar" workers will be $35,568/year ($684/week). This is an $11,908 increase from the current exempt salary threshold of $23,660.
What does this mean for your business?  Employers who currently pay supervisors, office managers, and other exempt professionals less than $35,568/year will need to increase salaries or convert the positions to nonexempt (overtime-eligible) before the new year. "Overtime-eligible" means employees must be paid 1½ times their regular hourly rate for hours worked in excess of 40 in a workweek.
All employers should review their workers' FLSA classifications (exempt or nonexempt) to ensure workers are properly classified based upon their job duties and pay.  Misclassification is a costly mistake that frequently leads to class action liability.
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