FLSA Overtime Rule Announced

May 18, 2016

flsa overtime rule announcedToday, the White House and the Department of Labor announced the publication of the final rule of the FLSA overtime exemption, also known as the “white collar exemption.” As we have been discussing in previous posts, this new rule dramatically raises the salary threshold for exempt workers to be eligible for overtime pay. The new law will take effect December 1, 2016, giving employers over 6 months to prepare and comply.

Specifically, the final FLSA overtime rule announced today will:

  • Raise the salary eligibility threshold from $23,000 to $47,476 per year (or from $455/week to $913/week)
  • Provide automatic updates to the salary threshold every three years (beginning on January 1, 2020), based on wage growth over time
  • Raise the “highly compensated” employee minimum salary to $134,004 to qualify for exemption

Make sure you review our helpful Decision-Making Guide and our Implementation Guide to help you prepare for these changes, and contact us for more information at (518) 373-4111.

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