New Overtime Law To Take Effect

Over Time

Longtime readers of AQUA will remember in 2016 a U.S. Labor Department rule was proposed to expand the number of workers who qualify for time-and-a-half overtime. Ultimately, that rule was struck down in court, but a new one appears to be on track for implementation in just over three months, on the first day of 2020.

For years, salaried workers making over $23,600 per year ($455 per week) and working more than 40 hours a week would not be required to be paid overtime. Under the new rule, that threshold jumps to $35,568 ($684 per week).

So for instance, starting on January 1, a salaried employee of a pool and spa company, say an assistant manager or service department head making $32,000 a year, must be paid overtime wages for any hours over 40 per week.

Some states currently have laws that exceed the threshold. In California, the threshold is $49,920 for large employers. Other states are exploring state laws which would raise the threshold above the Federal limit.

The Labor Department estimated 1.2 million workers will become eligible for overtime under the new rule.

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