It’s a Bird – It’s a Plane – It’s the Final Overtime Rule!!!

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September 24, 2019

The long wait is over. Today, the U.S. Department of Labor confirmed the final rule on the overtime “white collar” exemptions.

Effective January 1, 2020, the minimum salary level for exempt workers will be $684 per week ($35,568 annualized).

As you may remember, in 2015, the DOL attempted to increase the exemption to $913 per week ($47,476 annualized).  When federal lawsuits stalled the rule in 2016, the DOL went back to the drawing board.  As with prior versions, this Final Rule allows employers to consider up to 10% of the minimum (that is, $3,556.80) in commissions, bonuses, and other non-discretionary incentives.

What Wisconsin Employers Need to Do:  Employers should audit all exempt positions to either 1) increase salaries where needed to retain the exemption; or 2) prepare to modify the position to “non-exempt” status.  Beware: While the final rule refers to the “highly compensated” exemption (increasing that salary minimum from $100,000 to $107,432) Wisconsin and several other states do not recognize this exemption.  As always, if you have questions, please contact your favorite Ruder Ware Employment Law attorney for assistance!

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