Yesterday, the U.S. Department of Labor announced new rules effective January 1, 2020 that will raise the minimum salary level for exempt employees from $455 a week (currently) to $684 a week. Generally speaking, this means that after January 1, if your employer classifies you as a “salaried” employee who doesn’t get overtime pay for any hours worked over 40 in a week, your salary must be at least $35,568 a year. Otherwise, you cannot be legally classified as a “salaried” employee and your employer must pay you on an hourly-rate basis with overtime pay.
But as a nod to employers, the Feds will also start permitting nondiscretionary bonuses, incentive pay, and commissions that are paid annually to count for up to 10% of an employee’s minimum salary requirement.
You can read more about the new salary and overtime rules at the Department of Labor’s website.
If you have any questions about your wages, think your employer owes you backpay, or are an employer who is unsure about whether it is paying its employees correctly, the Media employment lawyers at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. have the answers you need. Call 610-565-3701 today to speak to a knowledgeable member of our legal team. You can also contact us online. From our offices in Media and West Chester, Pennsylvania, we assist clients across the greater Philadelphia area, including Chester County, Delaware County, and Montgomery County.