It’s a common misconception among employers that they could avoid paying overtime wages to an employee if they simply pay the employee a salary. While there are other criteria that must be satisfied in order to exempt an employee from overtime rules, the one overlooked rule is only recently come into play.
According to federal wage and hour rules, among the criteria is a mandated minimum wage for salaried employees and that minimum is increasing in 2020. Effective Jan 1, 2020, salaried employees must earn $35,568 annually ($684 per week), at a minimum, to qualify as exempt under the overtime rules. There are other criteria that must be satisfied as well.
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