Wyatt Employment Law Report

DOL Releases Final Rule Raising Salary Minimum to $35,568, Effective January 1, 2020

By Sharon Gold

On September 27, 2019, the Department of Labor (“DOL”) published the much anticipated Final Rule that significantly raises the minimum salary for exempt workers from $23,660 to $35,568.  It is estimated that more than one million workers will either become eligible for overtime pay or have their salaries raised to meet the minimum.  The Final Rule is available here.

We reported previously on the recent history of the proposed changes to the salary minimum and the court battles that ensued.

The Final Rule makes the following changes:

  • Raises the salary minimum for exempt workers from $23,660 to $35,568 yearly (or from $455 to $684 weekly)
  • Raises the minimum for highly compensated individuals from $100,000 to $107,432
  • Allows employers to use non-discretionary bonuses and incentive payments (including commissions) paid annually or more frequently to satisfy up to 10% of the standard salary level

The Final Rule does not make any changes to the job duties tests.  The DOL released a Fact Sheet, Frequently Asked Questions, Small Entity Compliance Guide, and a Press Release that are available here.

 

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