The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA’s minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/commissions towards meeting the salary level. The new thresholds account for growth in employee earnings since the currently enforced thresholds were set in 2004. In the final rule, the Department is:
The final rule will be effective on January 1, 2020.
The increases to the salary thresholds are long overdue in light of wage and salary growth since 2004. Nearly every person who commented on the Department’s 2017 Request for Information, participated at listening sessions in 2018 regarding the regulations, or commented on the Notice of Proposed Rulemaking agreed that the thresholds needed to be updated for this reason.
A 2016 final rule to change the overtime thresholds was enjoined by the U.S. District Court for the Eastern District of Texas on November 22, 2016, and was subsequently invalidated by that court. As of November 6, 2017, the U.S. Court of Appeals for the Fifth Circuit has held the appeal in abeyance pending further rulemaking regarding a revised salary threshold. As the 2016 final rule was invalidated, the Department has consistently enforced the 2004 level throughout the last 15 years.
More information about the final rule is available at www.dol.gov/whd/overtime2019/.
Ross T. Hendrickson
President
MRH Insurance Group, Inc.
"I want to thank you and your team again at HR Partners for your amazing work in securing a high-quality Customer Service Representative (CSR) for our Topeka MRH Insurance Group office.
Without a doubt, if it were not for your company’s ability to understand the different paths to communicate our need, we would not have been successful in securing, in our opinion, the very best CSR in Topeka. HR Partners was instrumental in providing the strategy to secure such an individual for our company and my workings with each and every member of your team was professional and impressive.
I shall ever be grateful for your assistance in helping our company grow in Topeka and northeast Kansas by securing the right MRH Team Member for our operation."