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It’s Official - DOL Publishes Final Overtime Rule For White Collar And Highly Compensated Employees

After much legal maneuvering and twists and turns, the U.S. Department of Labor (DOL) has published its final rule revising certain overtime exemptions under the Fair Labor Standards Act. The official changes are as follows:

  • The standard salary level for the executive, administrative, professional, outside sales and computer employee exemption has been increased from $455 ($23,660 annually) to $684 per week (equivalent to $35,568 per year for a full-year worker).
  • The total annual compensation level for the highly compensated employee exemption has been increased from $100,000 to $107,432 per year.
  • Employers may use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level.
  • Salary levels for workers in U.S. territories and in the motion picture industry have changed.

These changes become effective January 1, 2020. For more information on these changes, see the DOL's fact sheet and frequently asked questions. If you would like assistance in ensuring that you can meet these exemptions by the January deadline, please contact a KZA attorney.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.