The Department of Labor (the folks that make the Federal rules for employers/employees) released a press release earlier today announcing the final ruling on the Overtime Rule. Remember a few years ago when we were all scrambling trying to decide whether to increase our employees’ salaries or convert most of our job positions to hourly? Maybe you even attended one of the many trainings we hosted trying to get everyone ready for this big change. Then in November of 2016 the ruling came to screeching halt, and we’ve been waiting not-so-patiently for a final ruling ever since.
We are so happy to announce that the wait is FINALLY over. Below you’ll find a breakdown of the new ruling that’s expected to affect 1.3 million workers in the U.S.
In a nutshell, here’s what you need to know:
It goes into effect on January 1, 2020.
It increases the minimum salary requirement for exempt employees from $455 to $684 weekly which is equivalent to $35,568 per year for a full-year worker.
It increases the minimum annual salary for the “highly compensated employees” exemption from $100,000 to $107,432 per year.
Up to 10% of the minimum salary requirement may come from nondiscretionary bonuses and incentive payments.
For many of you, you’ve already done your research and know which employees should (or should not) be classified as EXEMPT (*sidenote: not all salaried employees are classified as exempt - there are regulations outlined in the Fair Labor Standards Act about which employees can be classified as exempt from minimum wage and overtime pay).
If the words exempt and non-exempt are new to you or you’ve forgotten what they mean and why they are so important you can read more here: https://www.simplyhrpartners.com/single-post/2016/10/24/SALARIED-EXEMPT-NON-EXEMPT-WHATS-THE-DIFFERENCE
Still have questions about what this all means and how it affects you and your business? We’re here to help! Contact us at 970-818-5007 or admin@simplyHRpartners.com
simplyHR LLC is a consulting firm located in Fort Collins, Colorado. Navigating the complex compliance issues related to having employees can be tricky, we make HR simple so you have time to focus on your business.
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