The US Department of Labor Increases Salary Threshold
The U.S. Department of Labor issued a final rule last week that will increase the standard salary level required to qualify for the executive, administrative or professional exemptions to the Fair Labor Standards Act Overtime Rules. Learn more here about compliance with the Fair Labor Standards Act. The current salary level was set by the U.S. Department of Labor in 2004 at $455 per week. Effective January 1, 2020, the salary threshold set by the U.S. Department of Labor will increase to $684 per week.
However, the increased salary threshold will not affect most New York employers, as New York State regulations already set the threshold for employees working in a bona fide executive or administrative capacity at $885 per week beginning on or after December 31, 2019 for employees outside of New York City, Nassau, Suffolk and Westchester counties. New York Employers will need to comply with the new U.S. Department of Labor $684 per week threshold for professional employees, as New York regulations do not set a threshold level for professional employees.
If you would like to schedule a consultation to talk about how this legislation may impact your business, please feel free to contact Amy Varel at firstname.lastname@example.org or 585.512.3519, or Peter Weishaar at email@example.com or 585.512.3542.
Amy’s employment practice includes advising business clients in regard to various employment-related matters including hiring and firing, wage and hour issues, employment agreements, non-compete agreements and the preparation of employee handbooks.
Peter's employment practice includes the representation of businesses and individuals in matters involving restrictive covenants, non-compete agreements, discrimination, failure to pay wages in State and Federal Courts, and before administrative agencies, including the New York State Division of Human Rights and the United States Equal Employment Opportunity Commission. Peter also writes a law blog, the Rochester Law Review, covering legal developments, cases of interest, and events happening in all of the key areas of his practice. You can follow the blog on Facebook and Twitter.
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