Beginning January 1, 2020, employees earning up to $35,568 per year may become eligible to receive overtime pay for hours worked in excess of 40 per week. The U.S. Department of Labor (“DOL”) issued a new rule (the “Overtime Rule”) on September 24, 2019, that increased the salary level an employee must earn to be classified as exempt from the overtime requirements of the federal Fair Labor Standards Act (“FLSA”), from $455 per week to $684 per week. As a result, an estimated 1.3 million additional employees will become eligible for overtime compensation.

CAPLAW developed the following FAQ to describe the new Overtime Rule and help Community Action Agencies (CAAs) prepare to implement changes. Note that state wage and hour laws may impose requirements that are more favorable to employees than the provisions of the FLSA. If state law establishes more protective standards than the FLSA, those higher standards apply in that state. Therefore, CAPLAW recommends that CAAs consult with an employment attorney licensed in their state to determine how best to comply with the new Overtime Rule and all applicable state and local rules.