A reminder that effective January 1, 2020 the new salary threshold for exempt employees will be in effect. This change increases the minimum salary threshold from the current $455* ($23,660 annually) per week to $684 ($35,568 annually). What this means is that any of your exempt employees will need to earn at least $684 weekly/$35,568 annually or they will no longer be exempt.
*For those employers in Connecticut the current minimum is $475 ($24,700 annually) and will increase to the new threshold.
As I mentioned in my blog in September:
What should employers do now?
- Review all employees who are currently exempt or salaried – those employees that receive a specific salary regardless of how many hours they work – and ensure their salary is at least $684 weekly or $35,568 annually;
- If some of your exempt employees do not make at least these minimum rates, you will need to either increase their rate to that level, or transition their status to non-exempt or hourly; and
- If you transition affected employees to non-exempt, they will now be eligible for overtime pay when working more than 40 hours in a work week.