The Act’s Facts
Effective 1/1/2020, the Fair Labor Standards Act (FLSA) is updating the exemption rule for overtime eligibility. The last time they made a change was in 2004 and estimates project over 1.3 million employees will become eligible for overtime pay. So, just what are the new thresholds for exempt and non-exempt employees:
Employees earning at least $684 a week, or $35,568 per year, will be exempt from overtime pay for any hours worked over 40 in one work week. Previously, the threshold was $23,660 per year.
The total annual compensation level