DOL Releases New Overtime Rule

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Effective January 1, 2020,  if you have employees and are paying them $35,568 or more annually and their primary job duties meet certain duty tests they are considered exempt from overtime. If you have employees being paid less than $35,568 and their primary job duties do not meet certain duty tests they are considered non-exempt which means if they work over 40 hours per week they must be paid time and a half. I am waiting for the final regulations to find out what needs to happen if your employees are making less than $35,568 and their primary duties do meet all applicable duty tests and they should be exempt. Will we be required to raise their pay and how long would we have to do this???

There are three tests to determine if a job is exempt (no overtime) or non-exempt (overtime paid after 40 hours). They are Salary Level, Salary Basis and Job Duties. You should visit if you have questions or are unsure. If you are ever audited by the Department of Labor and your jobs are not classified correctly for instance if you have employees in jobs you are not paying overtime and they should be based on the three tests for exemption you could have to pay back overtime which could be very costly.

When I see the final regulations, I will post them here.  Stay tuned for further information!!

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