The U.S. Department of Labor has announced its newest rule involving overtime that will be put into effect on Dec. 1.
According to the new rules, the standard salary level for full-time salaried workers in the lowest-wage Census region, which is currently the South, will be set at the 40th percentile of earnings. These current totals are $913 per week and $47,476 on an annual basis for those who work a full year.
Highly compensated employees who are subject to a minimal duties test will have their total annual compensation requirement set to the yearly equivalent of the 90th percentile of nationwide full-time salaried workers, which is $134,004.
The new rules also establish a system that will update salary and compensation levels automatically every three yearsto keep the levels at the selected percentiles.
In addition to the parameters of the Final Rule, there will be an amendment to the salary basis test that will allow employers to give nondiscretionary bonuses as well as incentive payments, which will include commissions, to fulfill up to 10 percent of the new salary level.