Employers, are you ready for the new overtime rule? The minimum salary for exempt employees under the Fair Labor Standards Act is increasing to $35,568 effective January 1, 2020 pursuant to the new rule issued by the Department of Labor (“DOL”) on September 24, 2019. Organizations that are covered by the FLSA and have employees classified as exempt from overtime who are not currently making at least $35,568 in salary per year should begin planning for the changes necessary to maintain exempt status, or be prepared to start paying those newly non-exempt employees overtime beginning on the effective date. The DOL anticipates that approximately 1.3 million workers will now be eligible for overtime pay as a result of the higher minimum salary requirement.
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