New Overtime Rule to be Effective January 2020

September 30, 2019

This is critical for all employers and may require some revision of procedures and practices – the time to begin that process is now! From our friends at ANCOR – “On Tuesday, the Department of Labor (DOL) released its final overtime rule, relevant to our members as they navigate wages and hours for their staff within the parameters set by Medicaid, which funds the majority of disability supports in the United States. The Wage and Hour Division within DOL has shared more details on the final rule: “In the final rule, the Department is:
  • 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; and
  • revising the special salary levels for workers in U.S. territories and the motion picture industry.
The final rule is effective on January 1, 2020.” It is of equal importance that you become very conscientious about categorization of staff and do not misuse the “contractor” option to include individuals who should be properly considered employees.  Further information is available of the Department of Labor website and might be worth a quick read!