The U.S. Department of Labor (DOL) announced on September 24, 2019, its final rule to raise the minimum salary for employees to qualify for Fair Labor Standards Act white-collar exemptions from $23,660 per year to $35,568 per year and allows certain bonuses/commissions to be counted towards this amount. Employees making less than this amount would automatically be eligible for overtime pay beyond 40 hours per week. The new rule will be effective on January 1, 2020.
Many restaurant companies may have salaried employees making less than the new minimum of $35,568, which would make the salaried employees eligible for overtime pay under the new rule. If so, now is the time to evaluate your compensation program to be in compliance by January 1, 2020.
For additional information, click here to read the press release from the DOL.