The updated Fair Labor Standards Act’s long-awaited final overtime rule went into effect on January 1, 2020. Please keep the following important provisions in mind when assessing your current payroll practices and procedures:
- The salary threshold for exempt employees has increased to $684 per week ($35,568 annually);
- The exemption threshold for highly compensated employees has increased to $107,432; and
- Employers may use nondiscretionary bonuses and incentives, including commissions, paid at least annually to satisfy up to 10% of the salary threshold.
Please direct questions about the final rule or its application to your specific workforce to Ashley N. Trotto, Esq. at (865) 546-7311.