Salary Threshold Raise Effective January 1, 2020
Just this week, the US Department of Labor issued a final rule raising the earning threshold for salaried exempt employees from $455/week to $684/week (equivalent to $35,568/year for a full-time employee). This change goes into effect on January 1, 2020.
Employees who make less than $684/week gross wages will no longer be qualified as exempt, and should be classified as non-exempt employees (making them eligible for overtime pay). Now would be a good time to examine the classification status of all employees, especially those currently classified as ‘salaried exempt.’
Contact me if you have questions on this new rule and how it affects your business.