NAICU Washington Update
Overtime Rule Goes Into Effect
January 16, 2020
The new U.S. Department of Labor
overtime pay rule increasing the annual salary threshold for white collar exempt employees went into effect on January 1. According to the new rule, workers who earn less than $35,568 annually are now eligible for overtime pay.
The new $35,568 threshold is a substantial increase from the previous amount of $23,660, set in 2004, although significantly lower than the $47,460 salary level proposed during the Obama Administration.
The new rule is estimated to impact 1.3 million workers nationwide.