Bloomberg Law
Dec. 31, 2019, 6:48 PM

New Overtime Rule Hitting Some Employers Harder Than Others

Ben Penn
Ben Penn

A significant update to federal overtime pay eligibility takes effect this week, and while it’s drawn little fanfare from corporations, lawyers say the change is creating compliance headaches for other workforce sectors.

Starting Jan. 1, the Labor Department will begin enforcing an annual salary threshold of $35,568, below which workers qualify for the time-and-a-half overtime premium when they work over 40 hours in a week. That represents a boost from the previous salary cutoff of $23,660, in place since 2004.

Although the new rule is projected to extend overtime wages to some 1.3 million employees, companies that already offer all ...

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