New DOL Overtime Rule in Effect Jan 1, 2020

As expected, the United States Department of Labor (DOL) issued a final rule on September 24, 2019 regarding salaried employees and overtime pay.  Effective January 1, 2020, employees who make less than $35,568 per year are eligible for overtime pay.

Under the new rule, to be exempt from overtime pay under the Fair Labor Standards Act employees must be paid at least $35,568 and also perform certain job duties.  If an employee is not paid $35,568 per year or does not perform certain duties, then the employee must be paid 1 ½ times his/her regularly hourly rate for hours worked in excess of 40 per workweek.

Estimates show that this new rule will force employers to reclassify more than a million currently exempt workers to nonexempt status.

Carr Allison’s Labor and Employment Team is standing by to assist employers in assessing whether certain employees qualify for overtime under the new rule, as well as to answer any questions.

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