New Overtime Rule Effective January 1, 2020

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On September 24, 2019, the Department of Labor announced its final updates to the “white collar” overtime exemption rules. These new rules go into effect on January 1, 2020. These rules affect, among others, administrative, executive, and professional employees who may be exempt from overtime payments if certain conditions are met. The updates to the exemption conditions include:

  • Raising the standard salary condition from $455 per week to $684 per week ($35,568.00 per year for full time workers);

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Federal Court Invalidates DoL’s Proposed Overtime Rule

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In November 2016, a federal district court in Texas granted a preliminary injunction against the imposition of the Department of Labor’s effort to change the white collar exemptions to overtime rules. The rule would have effectively doubled the salary requirement to maintain an exemption: from $455 per week to $913 per week.

The DoL appealed the injunction, but on August 31, 2017, it lost its appeal on summary judgment. Further, and more importantly,

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Start Your Overtime Exemption Analyses Now!

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On July 1, 2015, I informed you that the Department of Labor was initiating a change to the white collar exemption regulations and beginning a public comment period.  As the DoL reviews tens of thousands of comments on its proposed changes to the White Collar Exemptions, employers should begin analyzing their exempt positions to determine whether they will still be exempt from overtime after the rule is inevitably issued.

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