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New Overtime Pay Rules

On September 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay. The new rule is effective January 1, 2020 and includes the following changes to overtime rules: […]


On September 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay. The new rule is effective January 1, 2020 and includes the following changes to overtime rules:

  • Raise the salary level from the current $455 per week to $684 per week (or $35,568 per year for a full-year worker);
  • Raise the total annual compensation level for highly compensated employees from the current $100,000 per year to $107,432 per year (with a minimum weekly salary of at least $684);
  • Allow employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the salary level; and
  • Revise the special salary levels for workers in US territories and in the motion picture industry.

Of note, this final rule did not change the “duties test” for any exemption.

This message is a brief summary of a complex series of laws, rules and regulations. Please contact Edward Castellani at 517-377-0845 or ecast@fraserlawfirm.com, or David Houston at 517-377-0855 or dhous@fraserlawfirm.com with any questions.