New Rule On Overtime Pay – Effective 1/1/20
On September 24, 2019, the United States Department of Labor (USDOL) finalized rules regarding overtime pay. The USDOL raised the salary threshold for exempt employees from $23,660/yr (or $455 per week) to $35,568/yr (or $684 per week). So what does this mean to you? Any employee earning the new rate and below will be eligible for overtime pay once the new rule takes effect on January 1, 2020. According to the USDOL, an estimated 1.3 million American workers (about 170,000 in New Jersey) will be eligible for overtime pay once the rule takes effect. Under President Obama, the USDOL finalized rules raising the salary requirements to $47,476/yr (or $913 a week) but the rule was invalidated by the courts. The USDOL also raised the salary threshold for the highly compensated employee exemption from $100,000 to $107,432 per year. Employers should plan for this change come January. Please call Tony Russo, CIANJ, at 201-368-2100.