Capitol Correspondence - 09.30.19

DOL Final Overtime Rule Is Officially Released

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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.

Members getting ready to implement the rule might benefit from recommendations by SHRM on next steps.