U.S. DOL Issues Final Overtime Rule

Final rule for overtime pay under the Fair Labor Standards Act (FLSA).
September 25, 2019

The U.S. Department of Labor has announced a final rule for overtime pay under the Fair Labor Standards Act (FLSA).

Here are the main points to know:

  • raising the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker) (this is the amount that was in the proposed rule on which PIA commented earlier this year);
  • raising the total annual compensation level for “highly compensated employees (HCE)” from the currently-enforced level of $100,000 to $107,432 per year;
  • allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices (this also reflects the proposed rule that was issued earlier this year); and
  • revising the special salary levels for workers in U.S. territories and in the motion picture industry.

The DOL says the new rule will make 1.3 million American workers newly eligible for overtime pay under the FLSA.


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