The Department of Labor (DOL) this morning announced final updates to the Fair Labor Standards Act, slated to take effect January 1, 2020. The biggest change impacting schools will be the updated salary threshold for employees to be considered exempt from overtime.
Proposed changes to the rules include:
- Increases salary threshold from $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
- Allows employers to use nondiscretionary bonuses and incentive payments that are paid at least annually to satisfy up to 10 percent of the standard salary level;
- Raises the total annual compensation level for “highly compensated employees (HCE)” from $100,000 to $107,432 per year; and
- Revises the special salary levels for workers in U.S. territories and in the motion picture industry.
HR Services will provide additional guidance leading up to the January 1 effective date, and we’re working on updating our Administrator’s Guide to The Fair Labor Standards Act book. Stay tuned!
Amy Campbell is HR Services Director at TASB HR Services. Send Amy an email at email@example.com.
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