Removing Barriers Blog

DOL Issues Updated OT Final Rule
Posted September 24, 2019 by Chandler Schuette

Today, the Dept. of Labor issued a final rule updating the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements.

In the final rule, the Department is:

  • raising the “standard salary level” from the currently enforced level of $455 per week to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • raising the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year;
  • allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level, in recognition of evolving pay practices; and
  • revising the special salary levels for workers in U.S. territories and the motion picture industry.

In addition, while the DOL did not finalize a proposed fixed quadrennial schedule for amendments, the Dept. committed to updating the salary thresholds at regular intervals in an effort to avoid dramatic increases in the future.  CUNA was supportive of these regular salary updates and called on the DOL to minimize the impact of the rulemaking on small and rural credit unions.