Overtime Rule

Date: September 25, 2019

On September 24th, the Trump administration issued a final overtime rule expanding overtime pay eligibility. The rule increases the minimum salary for the “white collar” overtime exemption from $23,660 annually to $35,568 annually. This means that employees making under $35,568 annually will be eligible for overtime pay. 

The final rule becomes applicable on January 1, 2020 and will require employers to pay time-and-a-half rates to employees making less than $35,568 for hours that exceed 40 hours per week.

This updated threshold is lower than the threshold of $47,476 that the Obama administration finalized in 2016, but never became effective after NFIB successfully sued to stop the rule in 2016.


NFIB is continuing efforts to curb burdensome rules that negatively affect small business owners. Read NFIB’s Comment Letter to the DOL.

NFIB recently held a webinar on the overtime rule with compliance expert, including compensation strategies that can help businesses reduce costs associated with the new rule. You can listen to a recording of the webinar presentation here.

The full text of the regulation is available here from the Department of Labor.


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