business Employers, Review Your Compliance with New Overtime Rules February 26, 2020 Effective January 1, 2020 workers who earn less than $35,568 are entitled to overtime pay. Learn more about what the DOL has changed. Employers, are you caught up on the new overtime rules? As we covered in our blog, U.S. Department of Labor Extends Overtime Pay, final rules expanding overtime pay eligibility to approximately 1.3 million workers are effective as of January 1, 2020. Here’s what you should know. What are the new overtime rules? Effective January 1, 2020, workers who earn less than $35,568 per year ($684 per week) are automatically entitled to overtime pay. Prior to this change the threshold was $23,660 ($455 per week). Our prior blog linked here has more details. What else has changed? Due to evolving pay practices, the Dept. of Labor will now allow employers to use nondiscretionary bonuses and incentive payments paid at least once annually to satisfy up to 10% of the standard salary level.Special salary rates for workers in U.S. territories:o $380 per week for American Samoao $455 per week for Puerto Rico, U.S. Virgin Islands, Guam, and the Northern Mariana IslandsThere is a special base rate threshold of $1,043 per week for those in the motion picture industry.For other measures such as retirement plan testing that consider highly compensated employees: The annual threshold for HCEs has increased to $107,432 (up from $100,000). Questions on the new rules? Contact us.
