Employment Issues

On September 24, 2019, the U.S. Department of Labor (DOL) Wage and Hour Division released a final rule concerning overtime, effective January 1, 2020, that will increase the salary threshold, by approximately 50%, that so-called “white collar” employees must be paid in order to be classified as “exempt” under the Fair Labor Standards Act (FLSA). Employees who do not meet the new heightened salary threshold of $684 per week (which equates to $35,568 per year) will be considered non-exempt and thus eligible for overtime pay. The DOL estimates that this change will impact approximately 1.3 million workers.