New Federal Overtime Rules Take Effect January 1

Phil Lenzini, an attorney well known in Illinois library circles, provided the following information on the new Federal Overtime Rules:

On September 24, 2019, the US Department of Labor (DOL) published its final overtime rule, effective January 1, 2020, giving employers about 100 days to review and adjust the pay of their exempt workforce to comply with the law.

The new rule increases the salary level for the exemptions (executive, administrative, and professional). The new salary level for exemptions will be $684 per week ($35,568). Currently, the required salary is $455 per week ($23,660). The new rule makes no changes to the duties tests for any exemptions and does not provide for automatic annual increases in the minimum salary level.

At a minimum, libraries should check their exempt employees’ salaries (e.g. library directors) to determine if they will remain above the salary threshold necessary to maintain exempt status and plan for any necessary adjustments to take effect by January 1.