Federal Spotlight: Overtime Rule Final
September 26, 2019
This week, the U.S. Department of Labor issued the final overtime rule. The rule, which increases the salary threshold for those eligible for overtime, raises the total compensation requirement for highly compensated employees, and makes changes to nondiscretionary bonuses and commissions. According to the U.S. Department of Labor, the rule will make approximately 1.3 million more Americans eligible for overtime pay. The final rule is effective January 1, 2020. Read an update about the final rule.
ABI provided comment to the federal register during the first draft of the rule under the Obama administration, which would have drastically increased the salary threshold and been an impediment to Iowa employers in all industry sectors. ABI has been following this issue with our partners at the National Association of Manufacturers and U.S. Chamber. We appreciate their leadership on the issue and their advocacy. If you’re a member of either organization, you can expect to see more information soon, including the opportunity to participate in a webinar from the NAM.