The Long-Awaited Final Overtime Rule Has Landed

Yesterday, the Department of Labor (DOL) released the final version of its long-anticipated update to the rule calculating overtime eligibility under the Fair Labor Standards Act. As you might recall, the DOL attempted to update the overtime rule back in 2016, but some states and business groups who opposed the rule successfully challenged it in court. The Final Rule increases the "standard salary level" to qualify for an exemption from overtime, but not as drastically as the attempted 2016 update. The final rule is effective January 1, 2020, and we highlight its key provisions and provide next-step guidance below:

• The new salary threshold for White Collar Exemptions is $684/week (equivalent to $35,568/year). The Final Rule increases the "standard salary level" threshold for the executive, administrative, professional, computer, and outside sales exemptions to $684/week or $35,568 annually. This new threshold ties the standard salary level to the 20th percentile of