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New Rule Will Pay Overtime to Salaried Workers

Employees earning less than $35,500 to benefit

September 26, 2019

Up to 1.3 million salaried workers will be eligible for overtime pay next year under a new rule the U.S. Department of Labor (DOL)finalized this week, The New York Times reports.

Under the rule, most salaried workers who earn less than US$35,500 per year will receive time-and-a-half pay for overtime work starting January 1, 2020. Currently, salaried workers must earn under $23,7000 annually to be eligible for overtime pay.

In 2016, the DOL raised the salaried worker overtime pay threshold to under $47,500. Although many employers and business groups supported an increase in the pay threshold, they argued the amount was too high. A federal judge suspended then invalidated the 2016 rule, which never took effect.

“The final overtime rules are much more reasonable than the original rule proposed in 2016,” said John Nothdurft, ISSADirector of Government Affairs. “ISSA has been active in advocating for more sensible and workable overtime rules by submitting comments and attending public hearings, as well as engaging its 9,300 members throughout the cleaning industry. We are happy to see the DOL listened to many of our members’ concerns.”

The 2016 rule had sought to adjust the salary limit automatically every three years to keep up with rising rates. Under the new rule, future changes to the salary threshold must go through a formal review process.

Offering a competitive salary is one of the best ways to retain valued workers and save your company from the expense of hiring and training new employees.

 

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