New DOL Ruling Increases the Salary Threshold for Exempt Employees

club-2492011_1920This morning the Department of Labor (DOL) announced the new salary threshold for exempt employees. Currently employees who meet certain job duties tests and are paid on a salary basis equal to at least $455 per week can be considered exempt from overtime. The new ruling increases the salary threshold from $455 per week to $684 per week. This new threshold is effective January 1, 2020.

The new threshold means that employers who have exempt employees making less than $684 need to either reclassify the employees as non-exempt (making them eligible for overtime pay when working more than 40 hours in a workweek ) or need to increase wages to be above the weekly minimum. Continue reading

Clear Overtime Policy Saves Money

1428646_66849787It’s not enough to have a one-sentence statement in your employee handbook that merely tells your employees something like this: “All time worked beyond 40 hours in a workweek will be compensated at one-and-one-half times your regular hourly rate of pay.” ┬áIt’s not enough if you want to cut and control employee costs associated with overtime pay and exercise your employer rights at the same time.

Following are some things to consider to develop a clear and specific overtime policy:

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