The U.S. Department of Labor enacted a new Overtime Rule on September 24th, making 1.3 million American workers newly eligible for overtime pay, effective January 1, 2020.

The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, last amended in 2004. It allows employers to count a portion of certain bonuses and commissions towards meeting the salary level.

The impact of the Labor Department’s rule includes:

  • Raising the “standard salary level” from the currently enforced level of $455 per week to $684 per week (equivalent to $35,568 per year for a full-year worker).

  • Raising the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year.

  • Allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level, in recognition of evolving pay practices.

  • Revising the special salary levels for workers in U.S. territories and the motion picture industry.

This rule provides opportunity for companies to assess their employee time and attendance visibility, monitoring and optimization. Balancing hours and workload among personnel is imperative to control cost while maintaining operational integrity, to achieve company goals. Asure Software provides human capital management (HCM) services and systems assistance to achieve these objectives, configured to an organization’s specific needs, processes and culture.

Contact Asure for information.

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