DOL Issues Final Regulations For Salary Cutoff Amount For Overtime Exemption

Highlights

• The U.S. Department of Labor (DOL) issued its final overtime rule as it relates to the salary amount that employees must be paid in order to meet the salary basis requirements for exemption from overtime pay.
• Effective Jan. 1, 2020, exempt white-collar employees must be paid a guaranteed salary of at least $684 per workweek.
• Effective Jan. 1, 2020, the highly compensated employee exemption is raised to $107,432 per year of which $684 must be paid weekly on a salary or fee basis.

The U.S. Department of Labor (DOL) on Sept. 24, 2019, issued its final overtime rule as it relates to the salary amount that employees must be paid in order to meet the salary basis requirements for exemption from overtime pay. (See Holland & Knight's previous alert, " Be Prepared for New Federal Overtime Rule Regarding Salary," Sept. 12, 2019.) Through the end of 2019, most white-collar exempt employees must be paid at least $455 per workweek, which annualizes to