Exempt Employees: Current Rule
According to the Department of Labor, executive, professional, administrative, and computer employees can be considered exempt from minimum wage and overtime under the white collar exception. In order to be considered “Exempt”, however, this employee must also earn a minimum of $455 per week ($23,660 per year) under. Commissions and bonuses cannot be counted towards this minimum under the current rule.
Proposed Overtime Rule: What Will Change
Recently, the DOL has published a proposed overtime rule that would increase the minimum salary to $679 per week ($35,308 per year). This rule would allow for non-discretionary bonuses and incentive payments to account for up to 10% of the minimum, as long as they are paid out no less than once per year.
The anticipated effective date of this rule is January 2020, and the DOL intends to review these minimums every four years, and make adjustments based on the Consumer Price Index.
If you have questions regarding the newly proposed overtime rule, or exempt vs. non-exempt employees, contact us today! Time & Pay offers payroll and HR solutions that can help you minimize your labor costs, while maintaining DOL compliance in order to avoid fines and penalties.
About Time & Pay:
Time & Pay is a professional payroll service provider located in Johnson City, TN. We service organizations of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services, guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go workers comp, human resource management systems and services, ACA compliance, and more. We provide our customers with the cost effective tools needed to better manage their payroll, their employees and their business. Time & Pay’s services guarantee you will save money, time, and aggravation, and we back them up with the customer service you expect and deserve. Contact Us today to learn why business owners throughout the country are saying:
“Time & Pay! Why would you do payroll and timekeeping any other way?”