Labor Department Issues Final Overtime Rule

The Department of Labor, on September 24, issued a final rule that will make overtime pay available to 1.3 million additional workers. The new rule, takes effect on Jan. 1, 2020.

The new rule will raise the annual salary level at which companies will have to pay overtime to exempt workers from $23,660 to $35,568. Workers earning less than that amount annually will be paid time and a half for working over 40 hours per week.

The initial overtime rule proposed by the Obama administration would have raised the salary threshold for overtime eligibility to more than $47,000. That rule was struck down by the court in a 2016 challenge by states and various business groups. The new rule also does not include a provision to index the salary level to wage growth as the Obama-era rule proposed.

Please contact Danielle Waterfield at (202) 662-8516 with any questions or comments.


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