Happy New Year! As we recover from the holiday season and year-end wrap-up, it is a good time for employers to evaluate their workplace policies and practices to make sure that they are in line with the ever-changing employment law landscape. The coming year will show many changes in federal and state employment law, and employers should look to be prepared for those changes in 2020 and beyond.

Fair Labor Standards Act (FLSA)

Effective Jan. 1, a final rule issued Sept. 24, 2019, by the U.S. Department of Labor (DOL) amends the FLSA regulation to:

  • Increase the minimum annual salary for most exempt employees paid on a salary basis from the old level of $455 per week (or $23,660 per year) to $684 per week (or $35,568 per year).
  • Allow employers to count nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the standard salary level test, as long as they are paid annually or more frequently.
  • An increase from $100,000 to $107,432 as the minimum annual salary for highly compensated employees who face a looser duties test.