Prepare for the New DOL Overtime Law
Prepare for the New DOL Overtime Law
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The primary changes Effective January 1, 2020:

• The standard salary level for exempt employees is raised from $455 to $684 per week
• The total annual compensation level for “highly compensated employees” is raised from $100,000 to $107,432
• Employers are allowed to use commissions, nondiscretionary bonuses and other incentive payments that are paid at least annually to satisfy up to 10% of the salary level
• The special salary levels for workers in U.S. territories and in the motion picture industries has also been revised

Steps for the Employer:

• Employees making less than $684 per week will likely be eligible for overtime pay
• Employers will have to reclassify those employees as nonexempt hourly employees or give them raises to bring them up to the new level
• Employers will want to be sure those reclassified employees know what is expected of them as hourly workers

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