Changes to Wage and Hour Law Took Effect January 1, 2020

As of January 1, 2020, employers need to ensure that employees classified as “exempt” from overtime requirements are being paid the required salary.  Pursuant to the U.S. Department of Labor’s final rule, the minimum salary for executive, professional, and administrative employees has increased.  As we reported in our September 24, 2019 E-Lert, the new rule increases the salary required to meet the exemptions to $684 per week (the equivalent of $35,568 per year).  The required compensation for highly compensated employees is raised to $107,432.  Our E-Lert provides further details about the new rule.  If you need assistance determining whether your employees meet the exemptions under the Fair Labor Standards Act, please contact any Shawe Rosenthal attorney.

Also, as we discussed in our December 2019 E-Update, effective January 1, 2020, Maryland’s minimum wage increased from $10.10 to $11.00 per hour.  Our April 10, 2019 E-Lert provides further details about the law.  In addition, effective January 1, 2020, New Jersey’s minimum wage increased from $10.00 to $11.00 per hour.  Agricultural, seasonal, and small (fewer than 6 employees) employers in New Jersey are subject to a reduced rate of $10.30 per hour (up from $8.85).  New Jersey’s tipped wage rate increased from $2.63 to $3.13 per hour.