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Breaking News: New Federal Salary Threshold Announced – Effective January 1, 2020

EverythingHR Staff | 09/24/2019 | Blog

Photo by Jefferson Santos

By Bill Stephens, EverythingHR

Breaking announcement from the US Department of Labor! The new federal salary threshold for exempt status was announced this morning raising the “standard salary level.” The final rule goes into effect on January 1, 2020. There’s not a lot of time to get this figured out!

Although the final rule makes 1.3 million American workers newly eligible for overtime pay, this will not impact employees in California. The California salary threshold is considerably higher than the new federal level ($49,920 going up to $54,080 in January). The new federal level (impacting employees everywhere but California) will be $35,568. This means that any currently exempt employee earning between $23,660 and $35,568, will either be reclassified as non-exempt or given a salary increase to meet the new threshold.

Don’t figure this out alone! Reach out to our specialists at 833-447-9111 to strategize. This will also be a major topic of discussion at our upcoming Workplace & Employment Law Updates in November. If you have not already signed up, click here for schedules, programs, and registration: https://www.attendwelu.com/register  

To read the official announcement of the new rule from the DOL’s Wage and Hour Division visit https://www.dol.gov/whd/overtime2019/.