Overtime Threshold Increase Update
Some employee groups are not affected by this update:
In May 2016, the Department of Labor (DOL) announced revised regulations that affect the Fair Labor Standards Act’s “white collar” overtime exemptions.
The final regulations increase the salary threshold needed to qualify for most overtime exemptions from $455/week ($23,600 per year) to $913/week ($47,476/year). The final regulations require that employees below the new threshold be paid overtime (1.5 times their equivalent hourly wage) for any time worked each week above 40 hours.
Any business that employs workers with salaries under $47,476 will be directly affected by the new regulations and needs to consider their best course of action for each affected employee. It is estimated that 64% of employers have one employee or more that are affected by the threshold increase.
Organizations must begin to comply as of December 1, 2016.