New Salary Threshold Proposed for Overtime Exemption
After what must be record-setting deliberations, the U.S. Department of Labor (DOL) has published plans to raise the salary threshold - the amount a salaried administrative, executive, or professional employee must be paid in order to qualify as exempt from overtime - from $455 per week ($23,660 annually) to $679 per week ($35,308 annually). This is the minimum amount an employee must be guaranteed as a weekly salary, not subject to deductions for missed days or hours of work, in addition to satisfying other job-duty criteria to qualify as exempt from the Fair Labor Standards Act (FLSA) general obligation to pay 1.5 times an employee's "regular rate" for every hour worked over 40 in any work week. DOL is soliciting yet more comment from the public, but the change is estimated to take effect January 1, 2020.
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