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US DOL ISSUES FINAL RULE ON OVERTIME

By:          Michael J. Ernst , Partner

Today, September 24, 2019, the United States Department of Labor (“DOL”) announced the final rule which changes the “white collar” employee exemption salary threshold to the overtime pay requirements under the Fair Labor Standards Act (“FLSA”).

Previously, executive, administrative, and professional employees (so-called “white collar” employees) were considered exempt from overtime pay if the employees were paid at least $455 per week ($23,660 annually) and satisfied the duty requirements. Under the new rule to take effect on January 1, 2020, employees who are paid at least $684 per week ($35,568 annually) and satisfy the duty requirements will be considered exempt from overtime pay.

The DOL estimates that 1.3 million Americans will be eligible for overtime pay under the new rule as compared to the previous threshold salary of $23,660. However, many employees will lose their exempt status as a result of these changes. If your company has salaried, currently-exempt employees who are making at least $23,660 per year but less than $35,568 per year, those employees will become non-exempt unless that person’s salary is increased. 

The final rule also raised the total annual compensation level for “highly compensated employees” (“HCEs”) from the currently-enforced level of $100,000 to $107,432 per year.

HERE is the DOL’s fact sheet on the final rule. The final rule language will also be published in the Federal Register.

Stokes Carmichael & Ernst LLP (“ SCE ”) has represented businesses in employment law – as well as in commercial law and collections, business law, and general civil litigation – for over 47 years. SCE provides sound legal advice at a reasonable cost and is experienced in representing employers in a myriad of issues. Both the author and the firm are rated by “AV® Preeminent®” by Martindale-Hubbell®, the highest rating given by the legal industry’s premier peer-review rating system. This rating reflects “Preeminent” legal ability and “Very High” general ethical standards. Mr. Ernst has also been continually recognized as one of “Georgia’s Legal Elite,” as a “Georgia Super Lawyer®,” and as a “Top Rated Lawyer®.” 

If you have any employment law questions regarding your company, please contact Mike Ernst at 404.603.3441 or mje@scelaw.com .