Beginning on January 1, 2020
, the minimum salary required to qualify for the “white-collar” exemption to overtime will increase to
$648 per week ($35,568 per year)
from $455 per week ($23,660 per year). After that date, any executive, administrative, and professional employee earning less than the new threshold amount will become eligible for overtime pay (1½ times their regular rate) for any time worked
over 40 hours
in a work week.
Additionally, the new rule changes the annual compensation requirement for
“highly compensated employees” to $107,432
from $100,000. Employees who earn less than this amount will need to qualify under another exemption to be considered exempt from overtime pay.
The DOL did not change any of the exemption tests as they relate to job duties. Employers who previously completed a classification audit to determine whether employees fit the executive, administrative, or professional exemptions will need only to confirm that salaries meet the new requirements.
NOTE: NEW JERSEY EMPLOYERS are subject to federal threshold levels only.