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BREAKING: DOL Issues Final Overtime Rule BREAKING: DOL Issues Final Overtime Rule

BREAKING: DOL Issues Final Overtime Rule

The Department of Labor announced its final rule regarding the minimum salary required for white-collar employees.
 
In order to be exempt from overtime, in addition to meeting the applicable "duties" test, a white-collar employee must earn a salary of at least $684 per week ($35,568 annually) up from $455 per week ($23,660 annually). The new rule also raises the total compensation for the “highly-compensated” exemption from $100,000 to $107,432 annually.
 
Under the rule, employers are allowed to use non-discretionary bonuses, incentive payments and commissions to satisfy up to 10% of the standard salary level. 
 
This rule becomes effective January 1, 2020 and is expected to impact 1.3 million workers, making them eligible for overtime pay.
 
Many recall that under President Obama’s administration, the DOL had proposed raising the minimum salary to $47,476. That rule also had automatic cost-of-living adjustments. That rule was blocked by a federal court in Texas and never became effective.
 
However, many of the same issues regarding proper classification of current white-collar employee will again apply just as they did in 2016. In workforces that have exempt entry-level managers and administrative staff, many will now become eligible for overtime.
 
Contact Paul Bittner, Tami Earnhart or Manolis Boulukos or any of the labor and employment attorneys at Ice Miller if you need more information on how this can impact your business.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.

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