Federal Spotlight: New DOL Overtime Rule Goes Into Effect

January 2, 2020

Several new laws and regulations have gone into effect now that we have entered the new year. One regulation employers must comply with is the new wage threshold for overtime pay for employees established by the U.S. Department of Labor. The rule, which would impact over an estimated 1 million U.S. workers, expands the salary threshold from $23,660 to $35,568. Those who are paid a salary versus an hourly wage are entitled to be paid overtime if they’re under the new number. There is also a duties test that employees must meet to be eligible for this benefit. This threshold is far less than the $47,000 first proposed under the Obama administration in 2016. That proposal never went into effect, as it was blocked in court. The salary threshold had not been raised since 2004 and is generally viewed as a reasonable compromise by stakeholders. Read more from CNBC.