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DOL Unveils Final Rule Adjusting Overtime Pay Exemption Threshold at Last

Category: Human Resources
Decorative image of a clock face.
Photo by noor Younis on Unsplash

The U.S. Department of Labor’s adjustment to the overtime pay exemption has been increased from $23,600 to $35,568, less than the $47,500 previously proposed.

“Nonprofits should use the time between now and the January 1, 2020 effective date to carefully plan ahead, to mitigate their overtime pay risk.”

– Nicholas M. Reiter, Cynthia (Cindy) M. Lewin, George E. Constantine, and David A. Katz

On September 24, 2019, the U.S. Department of Labor (DOL) unveiled its long-awaited final rule under the Fair Labor Standards Act (FLSA) adjusting the overtime pay exemption threshold from $23,600 to $35,568. This increase is a critical change for the many nonprofit organizations that have workers earning less than $35,568 but more than $23,600, as they may now have to pay such workers overtime.

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