The U.S. Department of Labor released its new overtime pay threshold that takes effect January 1, 2020. The new salary threshold is raised to $684 per week/ $35,568 per year.
What This Means: Employees earning less than the threshold must be paid time and a half overtime pay for each hour worked beyond 40 hours in a week. This change applies to all employers beginning January 1, 2020, regardless of size or field of service.
How to Comply: Review the Department of Labor’s webpage about the new threshold. The website contains fact sheets, FAQ, and a compliance guide for small organizations. Then, make sure that your compensation and payroll policies are updated to reflect the new threshold.
Upcoming National Webinar: On Tuesday, November 5, 12:00 pm Pacific, the National Council of Nonprofits is hosting a national presentation to help all in the charitable community understand what the Overtime Final Rule means to nonprofit operations and missions, and what nonprofits should be doing now to prepare. The webinar will feature officials from the U.S. Department of Labor and experts from groups representing workers and employers who will present their unique perspectives and answer questions from nonprofits.
Next Steps: This salary threshold increase from the U.S. Department of Labor is separate from Washington State’s Department of Labor & Industries’ current overtime pay rule making. According to L&I’s proposal, its first salary threshold increase will take effect July 1, 2020, but the amount is not yet final. L&I is currently reviewing the comments that were submitted on its proposal and is expected to release its final rules in December 2019. Please make sure you are subscribed to our email list so that you can receive updates on L&I’s overtime pay rule making. Please feel free to contact us with any questions.