New Overtime Rule Effective January 1, 2020

On September 24, the Department of Labor (DOL) released the final version of its rule updating overtime pay eligibility under the Fair Labor Standards Act (FLSA).* Effective January 1, 2020, the rule raises salary thresholds for the first time since 2004.

You may remember that a 2016 initiative by the Obama administration was opposed by more than 20 states and various business coalitions because it more than doubled the minimum salary threshold; it was eventually invalidated by a federal judge.

Here’s what you need to know about the new ruling:

• Salaried employees who earn less than $35,568 per year are now entitled to overtime pay for work beyond 40 hours, regardless of their job responsibilities. (Employees who are paid hourly are eligible for overtime no matter their annual earnings.)


• Unless they fall under one of the “white collar exemptions,” you may also be required to pay overtime to salaried employees...
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