New FLSA White Collar Overtime Rules

effective January 1, 2020

The U.S. Department of Labor has released the final rules that change the salary level requirements for the executive, administrative and professional exemptions.

  • New minimum salary level is $684/week (35,568 annually)
    • under some circumstances payments, as much as 10% of the required salary level, may be credited toward this minimum
    • these credits are limited to non-discretionary payments
  • New Highly Compensated Level (HCL) guarantee has been raised to $107,432 annually.
    • $684 must be paid as a guaranteed weekly salary (no credits allowed)
    • as much as 10% of the HCL level may be credited through some other payments
  • The duties  tests have not changed, but do you know what they are?  This is an opportunity to review your practices and ascertain whether reclassification is warranted.

The devil is in the details.  For assistance in complying with these new standards, please contact me at