Happy New Year from all of us at Russell, Krafft & Gruber, LLP. As we ring in the new year, remembering to write 20 instead of 19 when writing the date isn’t the only change to be mindful of. As of January 1, 2020, many new laws, rules, and policies have taken effect that may impact you and your business.
Here’s a summary of a few of the key changes and links to additional information for several legal changes to be mindful of in 2020:
IRS Updates Standard Mileage Rate
On December 31, the IRS announced its new standard mileage rate for 2020: 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019.
US Department of Labor’s New Overtime Rule
The Department of Labor’s new overtime rule went into effect as of January 1, which updates the Fair Labor Standard Act’s minimum salary thresholds necessary to exempt executive, administrative, or professional employees from minimum wage and overtime pay requirements.
The DOL estimates the changes will impact as many as 1.3 million employees. The change that will likely impact the most workers is raising the minimum salary requirement from $455 per week to $684 per week, or from $23,660 per year to $35,568 per year for a full-year worker. To learn more about the changes, check out the DOL’s press release on the final rule here.