NFIB recently held a webinar on changes to the federal overtime rule that takes effect at the start of 2020. A compliance expert went over everything a business needs to know about the rule change, including compensation strategies that can help businesses reduce costs associated with the new rule.
Those interested in learning more can listen to the webinar here.
The minimum salary for the overtime exemption will rise from $23,660 annually to $35,568 annually. That means you’ll have to pay time-and-a-half for executive, administrative, or professional employees who make less than $35,568 for any work done beyond 40 hours per week.
The Department of Labor estimates that the change affects 1.3 million employees, raising the cost of compensation for the affected businesses. The cost would have been a lot higher had NFIB not stepped in with a lawsuit that blocked the Obama administration from raising the overtime threshold salary to $47,476. The new Trump administration increase was meant to be a compromise.
Affected NFIB members should double-check to make sure they are in compliance.
The Labor Department found 11,018 overtime rule violations in 2019, forcing payment of millions in back wages.
The full text of the regulation is available here from the Department of Labor.