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Photo Courtesy of DCL (Fabricator), Design by Poulin+Morris
Photo Courtesy of DCL (Fabricator), Design by Poulin+Morris
 

Federal Overtime Rule Coming Soon

Posted: 10/04/2019

Upcoming Webinar

Learn what you need to know to prepare for the New DOL Overtime Rule by registering for an upcoming webinar on Thursday, November 21.

Click here to register

A new federal regulation will increase the pay of nearly 1.5 million American workers starting on January 1, 2020—including some employees in the sign, graphics and visual communications industry.

The new overtime rule raises the number of salaried workers who are automatically entitled to overtime pay. Currently, those who earn a salary of less than $23,660 per year are entitled to overtime. In just a few months, that threshold will be raised to $35,568.

This federal regulation was first proposed in 2014 and has faced multiple lawsuits and congressional inquiries along the way.  Under the previous administration, the original updated salary threshold was $47,476, which would have made over 4 million salaried employees eligible for overtime.

ISA has argued that the Department of Labor overstepped its authority in issuing this new regulation, and supported suits in federal court by allied organizations such as the American Society of Association Executives and the U.S. Chamber of Commerce. In late 2016, a federal judge prevented the previous administration's increase from taking place. However, last year the DOL proposed the lower amount and now American businesses must plan accordingly. It should also be noted that most states have their own overtime laws, and several have salary thresholds higher than the federal standard.

If you have any questions, consult an attorney or accountant familiar with the laws in your state. In the meantime, you can prepare for this upcoming regulation by registering for the ISA webinar on November 21 at signs.org/webinars.