Skip to content
Holmes Business Law
Holmes Business Law
215-482-0285
  • Home
  • Attorney’s & Areas of Law
    • Business Entities
      • Corporations
      • Limited Liability Company (LLC)
    • Business Purchase or Sale
    • Raising Capital & Investor Agreements
      • Promissory Notes and Debt Financing
      • Private Placement and Equity Financing
    • Business Contracts
      • Consulting Agreement
      • Employment Contracts
      • Independent Contractor (1099) Agreements
      • Website Terms and Privacy Policies
    • Copyright & Trademark
    • Hiring Employees/NDA/Non Compete
    • Succession Planning
    • Commercial Lease
    • The Right Start Program
  • About
    • Speaking & Events
    • Webinars
    • Client Testimonials
    • Privacy Policy/Terms of Use
    • Contact
  • Business Success Tips
  • Flat Fee Services
    • New Businesses
    • Existing Businesses
    • Dispute Resolution
    • Trademarks & Copyright
    • Succession Planning
  • 215-482-0285

Do You Pay Employees A Salary? Don’t Make This Mistake!

12/11/2019
 

Do you have employees? Then you need to know about some important wage and hour law changes coming in 2020 for employers.

Many employers mistakenly believe that if they pay employees a salary, they don’t need to pay them overtime. That is mistaken.

New federal rules are coming that make over one million employees newly eligible to receive overtime. If an employee is eligible for overtime, an employer will have to pay time and half for all hours worked over 40 in a week.

The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA’s minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level.
In the final rule, the Department is:

  • raising the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • raising the total annual compensation level for “highly compensated employees (HCE)” from the currently-enforced level of $100,000 to $107,432 per year;
  • allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
  • revising the special salary levels for workers in U.S. territories and in the motion picture industry.

Source: https://www.dol.gov/newsroom/releases/whd/whd20190924

It’s important to note that if you are not pay salaried employees the minimum level, you’ll need to pay overtime.

For hourly workers, changes are coming on a state level. Beginning on July 1, 2020, the minimum wage in Pennsylvania will be $8.00 per hour. In January 2021, it will be $8.50, $9.00 by July 2021, and $9.50 on Jan 1, 2022.

Evaluating wages is also a great time to take a look at all of your employment policies and procedures. Are you using the proper non competes, non solicitation and non disclosure agreements?

Set up a call with our legal staff today to discuss how we can help with your labor law compliance.

Author

Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.

Categories

  • Uncategorized

Archives

  • May 2022
  • April 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • June 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • May 2017
  • April 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013

HOLMES BUSINESS LAW, P.C.

​1515 Market Street, Suite 1200,
Philadelphia, PA 19102
___________________________
40 E. Montgomery Avenue
4th Floor, Ardmore, PA 19003
​

​© 2022 by Holmes Business Law P.C.
All rights reserved.

  • ATTORNEYS & AREAS OF LAW 
  • Business Entities
  • Business Purchase or Sale
  • Raising Capital & Investor Agreements
  • Business Contracts
  • Copyright & Trademark
  • Hiring Employees/NDA/Non Compete
  • Succession Planning
  • Commercial Lease
  • The Right Start Program
  • BUSINESS SUCCESS TIPS

  • ABOUT 
  • Speaking and Events
  • Webinars
  • Client Testimonials
  • Privacy Policy/Terms of Use
  • Contact
  • FLAT FEE PACKAGES 
  • New Businesses
  • Existing Businesses
  • Dispute Resolution
  • Trademarks & Copyright
  • Succession Planning

  • REVIEWS

​All site content is subject to copyright 2021 by Holmes Business Law P.C.
This website and its content herein constitutes attorney advertising.  Any content on this website should be construed as informational, not legal advice.  No information on this website is intended to create an attorney-client relationship.  Only a signed fee agreement between Sarah E. Holmes and the client will establish an attorney-client relationship.  Use of any information on this site is provided “AS IS” with no warranty of any kind, either express or implied.  Always consult with a licensed attorney in your own state for legal advice.