FLSA Overtime Rule Resources

Everything HR professionals need to know about the FLSA salary threshold

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The FLSA overtime rule determines whether employees are eligible or exempt for overtime pay. Exempt employees, because of their rate of pay and type of work that they do, are not eligible for overtime pay for hours worked over 40 in a workweek. Nonexempt employees must be paid time and a half for any hours worked more than 40 in a workweek.

The Department of Labor proposed an increase in the salary-level threshold for white-collar exemptions to $35,308 per year from $23,660. If finalized, the proposed rule would extend overtime protections to more than one million workers who are not currently eligible under federal law.

Unless exempt, employees covered by the Fair Labor Standards Act must receive at least time and one-half their regular pay rate for all hours worked over 40 in a workweek.

Meeting the salary threshold doesn't automatically make an employee exempt from overtime pay; the employee's job duties also must primarily involve executive, administrative or professional duties as defined by the regulations.

HR professionals must know how to determine overtime eligibility for each employee.


Under the rule proposed March 7, 2019:

  • Workers who do not earn at least $35,308 a year ($679 a week) would have to be paid overtime, even if they’re classified as a manager or professional.
  • Nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis may be used to satisfy up to 10 percent of the standard salary level.
  • The special rule for highly compensated employees would require workers to earn a total annual compensation of at least $147,414 ($679 of which must be paid weekly on a salary or fee basis).
  • Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry.
  • No changes to the duties tests were proposed.
  • The proposed rule is expected to become effective approximately in January 2020.
  • The Department of Labor intends to propose an update to the salary threshold every four year to ensure that these levels continue to provide useful tests for exemption. Updates would not be automatic and would continue to require notice-and-comment rulemaking.


FLSA Overtime Rule Coverage

The Department of Labor has proposed an increase in the salary-level threshold for white-collar exemptions to $35,308 per year from $23,660. If finalized, the proposal will result in the reclassification by employers of more than a million currently exempt workers as nonexempt and an increase in pay for others above the new threshold. The proposal does not call for automatic adjustments to the salary threshold.


SHRM Member Resources:

SHRM members receive exclusive access to templates, tools, webcasts, how-to guides and more aimed at helping HR professionals get their organizations into compliance with the new overtime regulations. Anyone who is involved in HR, supervises the HR function or otherwise has an interest in HR is invited to join.


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