WASHINGTON—The Department of Labor’s (DoL) final overtime rule includes adjustments regarding the rule's salary level exemption and nondiscretionary bonuses and incentive payments. The rule is set to take effect Jan. 1, 2020.
The final rule raises the standard salary level for the executive, administrative and professional (EAP) overtime exemption to $35,568 annually.
“Also finalized by the rule is a NAFCU recommendation to allow employers to use nondiscretionary bonuses and incentive payments that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices,” said NAFCU in its analysis. “In addition, a NAFCU-sought change to remove the requirement for automatic, three-year adjustments to the salary level was included in the proposal and finalized.”