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Impact of the New Employee Overtime Rule by Industry and Tips for Compliance

An estimated 1.3 million U.S. workers will be eligible for overtime pay, but the impact varies by industry, job function and role. Here’s a deeper look at how companies will be affected.

The Department of Labor finalized its long-awaited overtime eligibility rule for salaried employees in September 2019. The new rule goes into effect on January 1, 2020 and requires employers to pay non-hourly and exempt workers who earn $35,568 or less overtime pay (i.e., one-and-a-half times their hourly equivalent base rate) for any work performed above 40 hours per week. Prior to the new rule, the threshold salary for automatic eligibility for overtime pay above a normal 40-hour week included employees who earned less than $23,600 a year.

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