Yesterday we told you about the new minimum salary level for exempt employees ($684 per week up from $455 per week). Today, we want to share the DOL’s analysis of how many employees will likely be impacted by the new rule. According to the DOL:
- 2 million currently exempt employees who earn at least $455 per week but less than the standard salary level of $684 per week will, without some intervening action by their employers, gain overtime eligibility; and
- An additional 2.2 million white collar workers who are currently nonexempt because they do not satisfy the EAP duties tests and currently earn at least $455 per week , but less than $684 per week, will have their overtime-eligible status strengthened in 2020 because these employees will now fail both the salary level and duties tests.
The DOL also estimates that annualized direct employer costs in the first 10 years following the rule’s effective date will be $173.3 million with 7 percent discounting, including $543.0 million in Year 1 and $99.1 million in Year 10.
The Final Rule is 245 pages. As we digest the contents we will continue to post updates.