Department of Labor Issues Final Overtime Rule

Last week the Department of Labor published a Final Rule updating the federal overtime regulations. Most significantly, the new rule increases the minimum salary required to qualify for the Executive, Administrative, and Professional exemptions to $913 per week (or about $47,476 annually). The new rule also creates a mechanism for automatically updating the minimum salary requirement every three years starting January 1, 2020. These changes become effective on December 1, 2016.

This new rule revises federal requirements concerning these exemptions. However, states may impose different and additional wage and hour requirements. Thus, employers must be mindful of and compliant with both state and federal requirements.