On September 24th the DOL updated its rules for overtime eligibility for salaried employees. This is the first time the department has updated overtime rules in 15 years and the changes fall into two categories, salaries and bonuses.
Salaries:
• The “standard salary level” moves from $455 to $684 per week.
• The “highly compensated employee level” moves from $100,000 to $107,432 per year.
• Special salary levels for workers in U.S. territories & the motion picture industry have also been revised
Bonuses:
• Employers may count up to 10% of non-discretionary bonuses and incentive payments (including commissions) towards meeting the standard salary level. (provided these bonuses and incentives are paid at least annually)
How this affects employers:
All salaried employees making less than $684/week ($35,568/yr) are legally eligible for overtime pay. All “highly compensated employees” making less than $107,432 are also eligible. Additionally Employers may count up to 10% of bonuses and incentives towards these thresholds.
