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Final Rule: Overtime Update


There have been dramatic changes and amendments made to the provisions regarding overtime exemptions under the FLSA (Fair Labor Standards Act) which go into effect on January 1, 2020.  The DOL (United States Department of Labor) has enacted its Final Rule updating the overtime exemptions.  Some changes include an increase in the annual salary of an employee.  


The new rule raises the annual salary threshold for exempt employees primarily in the Executive, Administrative, & Professional categories.  Employees are required to be paid overtime premium if they fall under these new guidelines.  These latest regulations demand a complete re-examination of definitions and classifications of all employees, payroll payment practices & administration.  It also requires careful implementation to prevent violations that could result in fines and penalties.  Many companies will experience added employees classified as non-exempt and a resulting increase in payroll costs, record keeping and reporting. 


Click on this link:  https://www.dol.gov/whd/overtime2019/ to be directed to the DOL’s web page and the Final Rule. 


Please contact us to discuss how your employees will be impacted or how you will be impacted as an employee.

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

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