New Overtime Rules in Effect December 2016

May 23, 2016 Written by

A new Federal Overtime Rule executed by the U.S. Department of Labor (DOL) will likely impact your business. Many of you are just now becoming aware that the DOL has unveiled new overtime regulations that increases the salary threshold for paid overtime. These changes are significant. Below are some bullet points from the new Overtime Final Rule regulations: 

  • The DOL changes raise the qualifying salary threshold level from its previous amount of $455 per week (the equivalent of $23,660 per year) to a new level of $913 per week (the equivalent of $47,476 per year).
  • Unless exempt, employees covered by the FLSA must receive overtime pay for all hours worked over 40 in a workweek at a rate not less than one and one-half times their regular rates of pay.
  • Salaried white collar employees paid below the updated salary level are generally entitled to overtime pay, while employees paid at or above the salary threshold level may be exempt from overtime pay if they primarily perform certain duties as defined within the DOL’s “Primary Duties Test.”
  • The new Overtime Final Rule does not include any changes to the duties tests, which can affect the determination of who is exempt from overtime.

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Written by: Doug Rodrigues