FLSA Update


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: 

  1. The salary threshold for exempt employees has increased to $684 per week ($35,568 annually);

  2. The exemption threshold for highly compensated employees has increased to $107,432; and

  3. 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.

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