The New Overtime Rules Take Effect January 1, 2020
Exempt or Non-Exempt: Overtime Compliance is On the Clock.
As of January 1, 2020, exempt employees must earn a minimum salary of $35,568 annually ($684 weekly) to satisfy one of three critical requirements to qualify as “overtime exempt”. This change is a little over 50% higher than the current minimum salary level of $23,660. However, as most employers are aware, the minimum salary is just the math - whereas the “duties test” is where most employers struggle.
Determining whether an employee has enough “white collar” responsibility to be exempt from overtime pay can be a difficult, time consuming decision to make - especially when the clock is ticking.
That said, getting it wrong has major consequences, including liability for back wages – and sometimes, double, triple or even quadruple back wages. In fact, liability for a single misclassified employee earning $35,000 annually and averaging 5 hours of overtime each week could be as high as $38,000 – or $3.8 million for 100 similarly situated employees.
Make the classification call with Navigator OT - the only self-service overtime solution, delivering actionable guidance in minutes not hours. Whether your company has 10 employees or 100,000, Navigator OT is the smart solution to your overtime compliance crunch.
Users benefit from:
An easy-to-use digital questionnaire to capture your specific fact pattern
Actionable risk assessment(s) driven by expert analysis of applicable federal and state regulations and over 2,400 court cases
Instant actionable guidance and a customized report on how to lower the risk of misclassification
A summary of the relevant federal and state exemption standards
A complete questionnaire transcript
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