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DOL Sets New Standard Salary Level for Overtime

On September 24, 2019, the United States Department of Labor (DOL) raised the standard salary level threshold for full-time workers from $455 to $684 per week. This means that employees making less than $35,568 per year will be eligible for overtime. Additional areas impacted by the DOL ruling are listed below:

  • Total annual compensation levels for highly compensated employees moved from $100,000 to $107,432.
  • Employers are now allowed to use nondiscretionary bonuses and incentive payments (including commissions), which are paid at least annually to satisfy up to 10 percent of the standard salary level.
  • The DOL revised the special salary levels for workers in U.S. territories and in the motion picture industry.

All changes are effective January 1, 2020. Between now and then, employers should determine if employee reclassifications are necessary or if salary levels should be adjusted for exempt employees. 

For more details regarding the DOL’s new ruling, click the two links shown below:

https://www.dol.gov/whd/overtime2019

https://www.dol.gov/newsroom/releases/whd/whd20190924 .

Submitted by: Mia Snipes, Human Resources Source: Department of Labor and Society for Human Resources