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New Overtime Rules Approved

Posted by Admin Posted on Oct 04 2019

Starting in 2020, workers making less than $35,500 per year will be entitled to overtime pay from their employers.  The new rule was announced by the Department of Labor this past week.  Prior to this rule change, the threshold was set at $23,600.  The prior rule has been in effect since 2004.

The new rule raises the previous threshold requiring employers to pay their employees overtime rate, which is 1.5 times a worker’s typical rate, for any hours worked over 40 in a work week.  Any hours in excess of 40 must be paid at the higher rate.  Any employees on a salary base making less than $35,500 will need to track hours worked. 

Rothrock payroll offers various time clocks to aid with your time keeping as well as available to help answer any questions regarding this upcoming change.