The DOL issued a final rule for overtime exemptions under The Federal Labor Standards Act (FLSA). Effective January 1, 2020, the rule increases the standard salary level to $107,432 annually for highly compensated employees and $684 weekly ($35,568 annually) for certain other individuals to qualify for the minimum wage and overtime exemption.

In addition, the rule permits employers to include up to 10 percent of an employee’s non-discretionary bonuses, incentives and commissions when calculating the employee’s standard salary level.

Our bulletin below contains additional information on the FLSA salary level adjustments and inclusion of non-discretionary bonuses.

Employers should prepare now by evaluating their current exempt employees to determine whose salary falls below the new applicable salary level and whether to increase their salary or reclassify them as non-exempt.

If you have questions or need help, please contact one of our benefits consultants.

Read Our Bulletin