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ARTICLE · 19 NOVEMBER 2016

DOL Implementation Deadline December 1st

Earlier this year, The Department of Labor announced a Final Rule on overtime pay. Hopefully, you've had time to prepare for implementation, which occurs December 1, 2016.

United StatesEmployment and HR
Goldin Peiser & Peiser, LLP
Goldin Peiser & Peiser, LLP

Earlier this year, The Department of Labor announced a Final Rule on overtime pay. Hopefully, you've had time to prepare for implementation, which occurs December 1, 2016.

Here are some key provisions of the Final Rule:

  • All workers earning up to $913 per week, or $47,476 annually for a full-year worker, must be paid at the overtime rate for any time worked beyond 40 hours per week.
  • Overtime pay rate is time and one-half the regular hourly rate.
  • The threshold for highly compensated employees has gone up, from $100,000 to $134,004.
  • Automatic updates to these thresholds will be made every three years, beginning January 1, 2020.

Employers have three choices for overtime work: they have the option to limit workers' hours to 40 per week, pay them time and one-half their regular hourly rate for all hours worked over that limit, or to hire part-time workers to keep full-time employees from working overtime.

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