VOLUME 27 | January 2020
DOL’s New Overtime Rule Is in Effect – Employers Are You Compliant?
On January 1, 2019 the U.S. Department of Labor’s (DOL) new overtime rule went into effect. Under the Fair Labor Standards Act, certain employees may qualify as exempt from the minimum wage and overtime requirements if they fit within the definitions of exempt executive, administrative and professional employees and meet certain salary thresholds. These thresholds were last updated in 2004. The rule sets the new thresholds as follows:
- The “standard salary level” has been increased from $455 per week to $684 per week, which is equivalent to $35,568 annually.
- The annual compensation for a “highly compensated employee” has been increased from $100,000 to $107,432.
- Employers can use annual, nondiscretionary bonuses and incentive payments to satisfy up to 10% of “standard salary level.”
- Special salary levels for workers in US territories and in the motion picture industry have been revised.
Andrew Scott is a Member of PK Law and part of the firm’s Labor and Employment Group. He represents private sector employers and public schools before federal and state courts, federal and state civil rights agencies, and the Maryland Office of Administrative Hearings on a variety of matters, including employment discrimination litigation, collective bargaining, teacher and student discipline, construction and procurement, and wage and hour claims. Mr. Scott also advises clients on the design and implementation of employment agreements, employee handbooks, policies and procedures. Mr. Scott can be reached at 410-339-6744 or ascott@pklaw.com.
