Cafeteria Plan Direct
  • Home
  • $79 Cafeteria Plan
  • About $79 POP
  • HSA Savings Calc
  • About Us
  • Blog

DOL Issues New Salary Limits for Overtime Exemptions

11/4/2019

0 Comments

 
On Sept. 24, 2019, the U.S. Department of Labor (DOL) announced a new final rule that updates the salary thresholds that some individuals must meet in order to qualify for a minimum wage and overtime exemption under the federal Fair Labor Standards Act (FLSA). The final rule becomes effective on Jan. 1, 2020.

2019 Overtime Final Rule

The final rule affects the exemptions for executive, administrative and professional (EAP) employees, highly compensated employees (HCEs), employees in the motion picture industry and individuals who work in various U.S. territories.

The final rule’s salary levels differ from both the 2016 and 2019 proposed levels. For 2020, the final rule EAP and HCE salary exemptions are as follows:

  • Standard salary level: $35,568 per year ($684 per week)
  • HCEs: $107,432 per year
The DOL intends to update the standard salary and HCE total annual compensation levels more regularly in the future through notice-and-comment rulemaking.

Employer Action Steps

To prepare for the final rule’s Jan. 1, 2020 effective date, employers should:

  • Determine which currently exempt employees have salaries below the new threshold.
  • Decide whether to increase salaries for these individuals or reclassify them as nonexempt employees.
0 Comments

    Small Business blog

       

    Archives

    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    January 2019
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    September 2014
    June 2014
    January 2014

    Categories

    All

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • Home
  • $79 Cafeteria Plan
  • About $79 POP
  • HSA Savings Calc
  • About Us
  • Blog