RESPONSE TO COVID-19 PANDEMIC

Upton & Hatfield values the health and well-being of our employees, clients, families, and communities. To uphold these values, we have implemented recommendations from the Center for Disease Control by encouraging our employees to work remotely whenever possible. This does not change our commitment to you, and we are still available to handle your legal needs and provide you with the highest quality legal services during these unsettled times. Our offices are open, but for urgent matters only in conformity with state and federal authority recommendations. If you have any questions or concerns, we are ready and available to discuss them with you. We want all of us to stay safe while we work during this temporary situation.

More American Workers Eligible for Overtime Pay

On September 24, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay.

The final rule updates 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 and allows employers to count a portion of certain bonuses and/or commissions towards meeting the salary level.

The final rule:

  • raises the “standard salary level” from the currently enforced level of $455 per week to $684 per week, the equivalent to $35,568 per year for a full-year worker.
  • raises the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year.
  • allows 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.
  • revises the special salary levels for workers in U.S. territories and the motion picture industry.

The final rule goes into effect on January 1, 2020.

If you have questions about overtime pay under this rule, contact an experienced employment attorney at Upton & Hatfield.

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