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ARTICLE · 26 MAY 2016

BREAKING NEWS: DOL Released Final Rule Regarding Overtime

Hunton Andrews Kurth LLP
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Yesterday, we informed you that the overtime rule was imminent, and early this morning, the Department of Labor ("DOL") released its final rule significantly modifying current exemptions from overtime ("Final Rule").

United StatesEmployment and HR
Marc Katz
Marc Katz
Isabel Crosby
Isabel Crosby
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Yesterday, we informed you that the overtime rule was imminent, and early this morning, the Department of Labor ("DOL") released its final rule significantly modifying current exemptions from overtime ("Final Rule"). While the Final Rule did taper back some of the provisions in the proposed rule, the substantive revisions were retained and now requires employers to audit their pay practices to ensure they will be in compliance by December 1, 2016 — the date the changes become effective.

Key Provisions of the Final Rule:

  • Salary Test – The current overtime exemption threshold of $23,660 ($455/week) has more than doubled to $47,476 ($913/week). The proposed rule suggested setting the standard salary level at the 40th percentile of weekly earnings for full–time salaried workers which was estimated to be over $50,000; however, the Final Rule opted to use the 40th percentile from the lowest–wage Census Region, which is currently the South.

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