The U.S. Department of Labor announced the final overtime rule on September 24, 2019. Starting January 1, 2020, 1.3 million additional American workers will become eligible for overtime pay.

The final rule updates the salary and compensation levels needed for workers to be considered exempt.

  1. raising the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  2. raising the total annual compensation level for “highly compensated employees (HCEs)” from the currently-enforced level of $100,000 to $107,432 per year;
  3. allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
  4. revising the special salary levels for workers in U.S. territories and in the motion picture industry.

The DOL clearly defines “overtime” for non-exempt employees as pay for hours worked during a given workweek in excess of 40, at a minimum rate of one and one-half times their regular pay. Read more about overtime here.

You can get more information regarding the new overtime rules here.

SmartPayroll Solutions can help you reduce overtime for administrative staff. Contact us today and ask how we can help streamline administrative processes such as payroll, timekeeping, HR tasks and more.