- Allow employers to use nondiscretionary bonuses and incentive payments, including commissions, to count for up to 10% of the standard salary level so long as those bonuses are paid annually;
- Raise the annual compensation requirement for “highly compensated employees” from $100,000 per year to $107,432; and
- Revise the special salary levels for workers in US territories as well as the motion picture industry.
The US Department of Labor (DOL) announced yesterday that it will raise the minimum threshold for mandatory overtime pay under the Fair Labor Standards Act (FLSA) to $35,568 from its current level of $23,660. The new rate will take effect January 1, 2020, and is expected to cover an additional 1.3 million workers who are ineligible under the current overtime rule. To be exempt from overtime under the FLSA, employees must be paid a salary of at least the threshold amount, as well as meet certain duties tests. If either condition is not met, they must be paid for hours worked in excess of 40 in a workweek at one and one-half times their regular hourly rate. In addition to raising the standard salary level for full-time employees, the DOL’s final rule also will: