We have all been waiting patiently for the final rule from the US Department of Labor on overtime pay. On September 24, 2019 the final rule was announced and it is effective on January 1, 2020.
We’ve been following this story for years, so if you want a recap you can check out my previous post here. If you just need a brief refresher, read on. Overtime was officially established in 1938 when the Fair Labor Standards Act was passed, and the 40-hour work week we all know and love was established two years later. The concept of overtime was introduced and proposed that all non-exempt employees who work over 40 hours a week would be compensated for their additional hours with time and a half pay. This only applied to non-exempt employees until 2004 when it was decided that if an employee’s salary was ~$23,000 a year or less, then they were entitled to overtime pay if they worked over 40 hours a week as well.
This final decision comes years after the initial proposal was made that would raise the salary threshold to ~$47,000 a year. This came very close but in 2017 it was officially terminated. One big reason was because this rule positioned the threshold to automatically adjust every four years based on inflation and Judges felt that no increase should be automatic, all are subject to review.
So here we are years later and we have a conclusion. The Labor Department finalized the rule and overtime pay eligibility now expands to salaried employees making less than $35,500 per year. This news is big – especially to the 1.3 million workers who are now eligible for overtime pay. Click here to read more about the final rule.
Now you should ask yourself, do I have the proper tools in place for tracking employee hours? January 1, 2020 will be here soon! Create a checklist and decide what you need for your business to comply with the new ruling. One of those items should be a time keeping solution. Not sure what to get? Don’t worry, Acroprint is here to help! Our products will track hours, overtime, bonuses and much more. Contact us today to discuss your business needs with us and together we can determine which product is best for your company.