The United States Department of Labor has issued a Final Rule which will raise the minimum salary threshold applicable to the executive, administrative and professional exemptions. The new rule will go into effect on January 1, 2020. Currently, the salary threshold is $455.00 per week, or $23,660.00 per year. Employees who meet the $455.00/week salary threshold, as well as the duties fall within the exemptions, need not be paid time-and-a-half for overtime hours worked.
Effective January 1, the new salary threshold will be $684.00 per week, or $35,568.00 per year. This means that after January 1, 2020, if you are a salaried employee earning less than $35,568/year, you will be owed overtime pay for hours worked above 40 per week. Employers have a choice if they want to maintain a salaried employees exempt status: they can increase the salary to the new threshold, ensure they don’t work beyond 40 hours in a week to avoid having to pay premium pay, or re-classify the employee to non-exempt and pay time-and-a-half for overtime hours worked.
Additionally, if you already are a salaried employee earning more than the thresholds, you may be mis-classified as exempt if your duties don’t satisfy a specific exemption. By way of example, if you earn a hefty salary for a retailer and are titled as an assistant manager, but you spend most of your time doing the same work as other hourly associates, then you may be owed overtime pay, despite being salaried and titled a manager. The Shavitz Law Group is a phone call or e-mail away to help evaluate your overtime rights despite being a salaried employee.
If you think you may be affected by the new Final Rule, and have questions about your compensation, please contact us today at [email protected], or call us directly at (800) 616-4000 for a free consultation. At Shavitz Law Group, we have helped thousands of workers stand up for their right to be fairly compensated. YOU EARNED IT, NOW LETS GO GET IT.