Beginning on January 1, 2020, the salary threshold will increase from $455 per week to $684 per week. As a result, any employee who earns less than $35,568 annually will now be eligible for overtime pay. The law will also raise the total annual compensation level for highly compensated employees from $100,000 per year to $107,432 per year.

Any business that employs workers with salaries under $35,568 will be directly affected by the new regulations and face a decision: provide affected employees with a salary increase or pay them overtime.

Download our latest guide to learn key details about the new rule and how it could impact your business.