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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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On September 24, 2019, the U.S. Department of Labor (DOL) issued a final overtime rule increasing the exempt salary requirement to $35,568. The final rule is set to take effect on January 1, 2020.

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To be exempt from overtime pay under the Fair Labor Standards Act, employees must: (1) be paid on a salary basis, (2) be paid at least the minimum salary level, and (3) meet the primary duties test. The new rule raises the salary level threshold from $455 a week ($23,660 annualized) to $684 a week ($35,568 annualized). Employees paid less than $35,568 will be eligible for overtime.

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The current salary threshold of $23,700 has been in place since 2004. In 2016, the Obama administration attempted to increase the salary level requirement to $47,476. However, a federal judge in Texas blocked that rule in 2017. The DOL anticipates that 1.3 million workers will be eligible for overtime pay as a result of the new $35,568 salary threshold.

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If you have any questions about the final rule, or about how to prepare for its implementation, please contact:

Heather M. Muzumdar 513.352.6691 <a href="mailto:Heather.Muzumdar@ThompsonHine.com">Heather.Muzumdar@ThompsonHine.com</a>

or any member of our <a href="http://www.thompsonhine.com/services/labor-amp-employment">Labor &amp; Employment</a> group.

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

https://admin.thompsonhine.com/wp-content/uploads/2022/04/Labor__Employment_@lert_-_Department_of_Labor_Issues_Final_Overtime_Rule.pdf

Department of Labor Issues Final Overtime Rule

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