For the last year, the U.S. Department of Labor (DOL) has been
working on proposed rule changes related to overtime exemptions.
These changes are designed to substantially decrease the number of
employees who are exempt from overtime. Today, the Department of
Labor released the final rule changes. Employers are required to be
compliant with these changes by December 1, 2016.
Below are the key points to the changes in the law employers
should know and address:
Higher Minimum Salary for Overtime Exemptions
In addition to the other requirements for an employee to be
exempt from overtime, the minimum salary requirement is increasing.
What used to be a minimum of $455 per week will now be $913 per
week or $47,476 per year. This doubles the current salary threshold
level, but is slightly lower than that proposed in the rule. This
is the primary reason many currently exempt employees will lose
their exemption.
