EMPLOYEES MAKING LESS THAN $35,568 ELIGIBLE FOR OVERTIME BEGINNING JANUARY 2020
As we have been advising for the last few years, the Department of Labor (DOL) has been working on updating the salary threshold for overtime pay under the Fair Labor Standards Act (FLSA). Today, it issued its final rule, which will go into effect on January 1, 2020.
The salary threshold below which employees will be subject to overtime pay will raise to $35,568 per year ($684 per week). This is a vast improvement from the threshold proposed under the Obama Administration, which would have doubled the current threshold. The current threshold, which has been in effect for 15 years, is $23,660 per year ($455 per week).
This change to the salary threshold means that employees making less than $35,568 per year will be subject to overtime beginning January 1, 2020. This will include many employees who were exempt under the previous threshold.
To prepare for the new salary threshold, employers should look at their current salary data and determine which employees fall below the new salary threshold. For those employees, employers will need to determine the best course of action for their business: raise employees’ salaries above the new threshold to maintain the exempt status (assuming all other requirements are met) or reclassify the position as non-exempt and pay overtime when overtime is worked.
Meeting the salary threshold is just part of the equation. In addition to reviewing employee salary data, employers should look closely at employees’ job duties to ensure they meet the requirements for exemption. Misclassification is one of the most common violations of the FLSA; if employers are reviewing salaries for exemption, they should make sure they review job duties as well.
Need help? Nevada Association of Employers provides a helpful checklist to assist members with making the determination whether an employee is exempt from the minimum wage and overtime requirements of the FLSA or not.
In addition to raising the salary threshold for overtime pay, the DOL’s final rule also raises the threshold for being considered a “highly compensated” employee. Currently, the threshold is $100,000. Beginning January 1, 2020, the threshold will raise to $107,432 (of which $684 must be paid weekly on a salary or fee basis).
While the new rule doesn’t provide for automatic adjustments to the salary threshold — something that would have been the case under the Obama Administration’s rule — the DOL states that it intends to update the thresholds more regularly in the future. Therefore, employers should anticipate seeing increases to the salary threshold in the future and should plan accordingly.
Nevada Association of Employers has been monitoring the latest developments with the change to the salary threshold and will continue to do so to ensure members have the latest information to remain compliant. Nevada businesses trust that they are getting the latest information on their rights and obligations from NAE because it’s what we do. For more information about NAE and what we do for Nevada employers, visit our website. If you are a Nevada employer interested in membership, please contact membership@nevadaemployers.org or join today!
HR FORMS
-
Home
For over 85 years
Workplace compliance and HR administration
Nevada Association of Employers (NAE) has compiled a collection of commonly used HR forms, checklists, policies, and employer guides to help Nevada businesses manage workplace compliance and HR administration.
Whether you are looking for an employment application, employee file checklist, payroll deduction form, performance appraisal form, or FLSA exemption worksheet, NAE provides resources designed to support employers with day-to-day HR operations.
These tools help employers maintain consistent documentation practices and ensure workplace policies align with federal and Nevada employment regulations.
Employers who need additional guidance on HR compliance may also benefit from services such as HR Hotline support or professional HR audits, which help identify potential compliance gaps before they become legal issues.
Access HR Forms Through the Member Portal
NAE members can access these HR resources through the Member Portal (login required). The portal includes downloadable HR forms, customizable policies, and other templates that help employers manage employee documentation and HR procedures efficiently.
These resources are designed to work alongside other NAE compliance tools, including the HR Compliance Checklist and Employee Handbook Review services that help employers maintain legally compliant workplace policies.
Lets Start Today
Need a Form or Resource Not Listed?
If you don’t see the HR resource you need, NAE’s HR professionals and employment law attorneys are available to help.
Members can request guidance or customized resources through services such as Legal Hotline or employment legal services, which provide expert advice on workplace compliance and HR documentation.
Contact Nevada Association of Employers to speak with our team about your HR needs.
📞 Phone: 888-438-3125
📧 Email: info@nevadaemployers.org
Contact Nevada Association of Employers
Begin Your Journey Now:
Become a Member
OR
Speak With Member Services:
Give Us a Call
See Why Nevada Employers Trust NAE
[trustindex no-registration=google]