Table of Contents
DISCLAIMER: The information presented in this document highlights several examples of federal and/or state labor law requirements. Replicon makes no guarantees as to the completeness or accuracy of these summarized requirements. This document in no way suggests or offers any labor law guidance, or legal advice of any kind, and should not be construed as such. If you need legal advice in relation to labor law compliance issues, please consult with your qualified legal advisor.
The Ruling
Nearly doubled minimum salary for overtime exempt employees
$24,000
Old Threshold
$47,476
New Threshold
Update for Highly Compensated Employees (HCE)
If you earn
Over $134,000 per year
You are ineligible for overtime
Eligibility In Numbers
4.2 million workers
will now be eligible for overtime
Date in Effect
with automatic updates every 3 years
* This infographic was created in reference to the overtime regulations proposed in May 2016. For information on the update effective as of January 1st, 2020, see this three-part series detailing all of the latest changes, impacts, and best practices.
Who is Affected
35% of full time salaried workers
will be entitled to overtime solely based on their salary
Gender and Age Breakdown
56%
Female
44%
Male
61% are age 35 or older
Top 5 States By Number Of Workers
-
California
392,000
-
Texas
370,000
-
Florida
331,000
-
New York
278,000
-
Illinois
194,000
Tip: Some states have different overtime rules.
Learn more by accessing our map
replicon.com/regulation/united-states-labor-laws/
How Employers Can Comply
Pay
current salary with overtime after 40 hours
Raise
worker’s salaries above the new threshold
Limit workers hours to 40 per week
by reorganizing work loads or adjusting schedules
Know
who’s approaching overtime
Track Hours
worked and monitor overtime
Reduce
unplanned overtime
Stay Compliant
with overtime rules payout