HR Alert! Overtime Rule Change

Posted by Christy Putnam on September 24, 2019 at 11:57 AM

HR Alert Overtime Rule ChangesThe U.S. Department of Labor (DOL) issued a final ruling today for overtime pay when employees work more than 40 hours in a week. Employees who make less than $35,568 will be eligible for overtime effective January 1, 2020. This is expected to affect approximately 1.3 million American workers.

The DOL has set the standard salary level at $684 per week, which is an increase from the current $455. The current level has been in effect since 2004. The same calculation methodology used in 2004 was applied for the new level that will go into effect in 2020. This ruling ends a 5-year battle which started during the Obama administration, which tried to increase limits to $47,000. That would have affected at least 3 million people.

The annual compensation level for “highly compensated employees (HCEs)” will also increase from the current $100,000 to $107,432.

Employers are advised to review employee's FLSA status and wages to make sure they are in compliance for the changes coming in January. As you prepare for the new year and are looking to automate your processes and tracking systems for all things HR, please reach out to us so we can show you how People Savvy HCM may be able to help. And don't forget to subscribe to our blog in order to keep receiving valuable information like this.

Topics: Human Capital Management, Human Resources, Payroll, HR Compliance

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