Breaking: US DOL Final OT Rule Raises the FLSA Exemption Thresholds, Effective Jan. 1, 2020
On Tuesday, Sept. 24, the U.S. Department of Labor (DOL) released the long-anticipated final rule for overtime exemptions, which alters the salary thresholds for several of the Fair Labor Standards Act (FLSA) exemptions. Under the final rule, the salary threshold levels for the white-collar exemptions and the highly compensated employee exemption were increased, making it more difficult for an employee to be classified as exempt under the FLSA. As a result, an estimated additional 1.3 million workers will qualify for overtime premiums.
The most important changes in the new rule include:
The final rule will go into effect on Jan. 1, 2020. It replaces the 2016 Obama-era rule that was enjoined by a federal judge in Texas before it took effect. While the final rule raises the salary thresholds, the thresholds are significantly lower than the 2016 rule. The DOL also abandoned its plans to automatically update the minimum salary requirements over time.
For more information regarding compliance with this decision, please contact your Dinsmore labor attorney. More information on the proposed rule is available here.
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