As of January 1, 2020, federal regulations will change, and an estimated 1.3 million more workers will become entitled to overtime pay. Employers may have employees not currently overtime eligible who may become eligible due to changes in the new salary and compensation threshold levels for exempt employees.
Among other things, the new overtime rules update the earnings thresholds necessary to exempt executive, administrative, or professional employees from the Fair Labor Standard Act’s minimum wage and overtime pay requirements. Although there are exceptions, generally, an employee who makes less than $684/week will become eligible for overtime pay, regardless of whether they are compensated on a salary or hourly basis and regardless of whether they otherwise meet the “duties test” for the executive, administrative, or professional exemption. The new standard salary level of $684 per week is an increase from the standard salary level previously in effect of $455 per week.
If you have questions about whether the overtime rules impact your workplace or for more information, please contact the Sheehey employment lawyers at (802) 864-9891 or click here.
