Labor Department Overtime Rule Set for Jan. 1

Dec 19, 2019

The Labor Department's final rule updating the earnings threshold that determines exemptions from overtime pay requirements is set to take effect Jan. 1, 2020.

After a federal judge in 2017 struck down the department's 2016 final rule, the new final rule increases the salary level test from $23,660 to $35,568 per year and the total annual compensation level for "highly compensated employees" from $100,000 to $107,432 per year.

As advocated by ICBA, the rule uses the department's 2004 methodology. In a comment letter earlier this year, ICBA said that model is the most accurate way of distinguishing exempt and non-exempt employees for community banks and other small businesses that frequently operate in low-wage rural areas.