Yesterday, (September 24, 2019), the Department of Labor (“DOL”) announced a new final rule, the effect of which will make “1.3 million American workers newly eligible for overtime pay.”
What Changes Will Take Place?
The final rule, which will take effect on January 1, 2020, essentially “updates the salary and compensation levels” for certain employees exempt from the Fair Labor Standards Act (“FLSA”) minimum wage and overtime regulations (i.e. executive, administrative, and professional employees). Specifically, the final rule will:
What Does This Mean For Employers?
Since the final rule does not take effect until January 1, 2020, there is a chance that a federal court will enjoin (or stop) the final rule from becoming effective. However, until that happens, employers should prepare to transition to the new salary basis and take the steps necessary to ensure that executive, administrative, and professional employees are paid in accordance with the new final rule.
For more information on the DOL’s new final rule and the FLSA regulations, please contact the attorneys at York Bowman Law.