Law About Salaried Managers . This isn’t the first time in recent years that we’ve had a final rule issued increasing the salary threshold for the white-collar exemptions. New Exempt Salary Requirements 2019 . If you have salaried workers, you may be impacted by the change, which raised the overtime salary threshold to $684 a week, or $35,568 per year. Here’s an in-depth look at the new overtime rule for 2020, and a few steps on how to adapt. With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. Federal law states that all employees are considered “non-exempt” from overtime pay unless they meet certain requirements. raised the salary of exempt white collar workers from a previous minimum of $24,660 to a new minimum of $47,476 Most employees must meet all three "tests" to be exempt. Don't subscribe Under the new law, over four million salaried workers may be eligible for overtime pay. Federal law states that all employees are considered “non-exempt” from overtime pay unless they meet certain requirements. This means that while the employee must be paid at least 90% of the minimum salary throughout the year, (including nondiscretionary bonuses, incentive payments, and commissions), the employer has one pay period after the year to compensate the employee for any shortfalls that would classify them as non-exempt. As with overtime, many states and municipalities have their own minimum wage rates, and employees are always entitled to the highest applicable rate. This includes teachers, elementary and secondary school administrative personnel, outside sales staff and employees in specific computer-related positions. The long-awaited changes to the federal overtime rules were finalized last fall and took effect on January 1, 2020.. As a seasoned business owner, I’ve spent a lot of time talking to employees… This new protection applies to almost anyone making less than $47,476, including salaried managers or professionals. Your state government may also have further requirements when it comes to paying overtime. In addition to federal EEOC laws, the following states have made updates to their discrimination or harassment regulations. The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. Note that some states also have their own rules for overtime. Does the employee typically work late? The new rule will raise the salary threshold to $684 a week ($35,568 annualized) from $455 a week ($23,660 annualized). Salaried exempt employees receive a minimum wage of $455 a week or $23,600 a year, according to Fair Labor Standards Act (FLSA) laws. The final overtime rule allows employers to include nondiscretionary bonuses, commissions, and incentive payments to satisfy up to 10% of the salary requirement, as long as they are paid annually at the minimum. Now is the best time to switch. Reclassifying them might be the best option. The previous overtime rule stipulated that the pay threshold was at $455 per week, or $23,660 per year. Federal Laws about Hours Worked. If they work more than 40 hours a week, they must be paid at least minimum wage and overtime pay for any extra hours. Under the new law, salaried employees making less than $47,476 a year must be paid overtime. There…, The federal government has not changed its minimum wage ordinance of $7.25 since 2009, but according to the Department of…, There are currently no federal laws regarding whether or not business owners have to give paid or unpaid time off…. The government has come out with a new and universal definition of ‘wages’ to bring in parity amongst the four new Labour Codes as against the varied definitions under the extant laws. to ensure accurate records is a good idea if you plan on reclassifying employees. 1. We’re here for you. Employment Law Employers Should Plan Now for New Federal Overtime Rule lisa.nagele-piazza@shrm.org. On the other hand, it’s not what many workers … Labor Laws For Salaried Employees 2019 . Exempt Salary Requirements 2020 . Elect to reclassify the impacted employees as non-exempt and pay them overtime when necessary. [Looking for an updated, easy solution to timekeeping. New York State also saw an increase on December 31, 2019, which brought the minimum wage for small employers in New York City to $15 an hour. What are my compliance options under the new law? Up to 10% of the salary minimum can be made up of commissions, bonuses, and other incentives that are paid out once a year or more frequently. Homebase makes managing hourly work easier for over 100,000 local businesses. The classification of an employee as exempt is based on job duties and pay level, not on job title. The employee must be paid a fixed salary that cannot go up or down based on the quantity—or quality—of their work. However, employers of salaried exempt employees in New York can pay these workers higher weekly wages. On January 1, 2020, the Department of Labor’s final rule that raises the salary threshold requirement for overtime exemption took effect. If you have employees who were considered exempt before the final rule but no longer fall into that category with their current salary, you can either: First things first, evaluate your options and estimate how much each route will cost you. If an employee wants to work overtime (in excess of 40 hours in the workweek) and will accept straight time, can the employee waive his/her right to overtime pay? Twenty-one states increased their minimum wage rates on January 1, with four more plus the District of Columbia bumping rates up later in 2020. This means that anyone who made this amount of money (or less) needed to be paid overtime wages if they worked more than 40 hours per week. In 2016, the DOL, under President Obama’s administration, issued a final rule increasing … This is the big one. Federal Labor Laws. All [tweetthis]The new Federal Overtime Law means 4.2 million more workers will qualify for overtime. is not considered time worked. The new overtime rule takes the salary threshold from $455 per week (as established in 2004) to $684 per week. The new rule is set to take effect on January 1, 2020 and increase the number of overtime-eligible employees by 1.3 million. However, there are…, Is your worker an employee or an independent contractor? manage an enterprise, a department, or a subdivision of an enterprise. However, if an employer chooses to do so, breaks, usually of the type lasting less than 20 minutes, must be paid. We’ve tried to hit the major 2020 updates, but this is a general round-up only that may not include everything your business needs to know for the year ahead. The minimum salary requirement for administrative, professional, and executive exemptions increased from $455 per week to $684 per week, or $35,568 per year on January 1, 2020. Explain the new overtime law to employees. This question has become more acute now that many currently exempt employees will be classified as non-exempt, if they do not meet the increased salary threshold of $47,476 for the white-collar … As 2019 approaches, it brings a number of new laws and regulations for employers to address. primarily perform office or non-manual work directly related to business operations of the employer or the employer’s customers. The Overtime Regulations 2019