NEW OVERTIME THRESHOLD EFFECTIVE JANUARY 1, 2020 - IT'S HERE!

NEW OVERTIME THRESHOLD EFFECTIVE JANUARY 1, 2020 - IT'S HERE!

January 2, 2020

The government has finally made its ruling official and the new overtime rule that is in effect has the standard salary level for workers set at $35,568 per year or $684 per week.

This new rule will update the minimum salary thresholds (that were previously set in 2004) necessary to exempt executive, administrative, or professional employees from the minimum wage and overtime pay requirements.  (The new rule does NOT make any changes to the duties test.

The standard salary level for employees will be raised to $35,568 or $684 per week.

The total compensation level for highly compensated employees will be raised to $107,432 per year. 

Remember that aside from salary, you can include commissions, non-discretionary bonuses and other non-discretionary compensation to determine if an employee falls into that bucket.

(Credits for board or lodging, payments for medical or life insurance, or contributions to retirement plans or other fringe benefits don't count toward it.)

The DOL says it plans to adjust it every four years.  We will now have a system that can serve you for years to come.

Source:National Law Review and CFO & Controller Alert