New Overtime Rules Will Affect You – Are You Ready?

In May 2015, the Department of Labor (DOL) finalized new overtime rules that update the thresholds for classifying workers as nonexempt and highly compensated. The long awaited changes will increase pay for more than 4 million workers, setting the income threshold for exempt workers to the level it would have reached if the threshold had not been frozen more than a decade ago.

That is good news for lower and middle-income families, but it could be costly for employers who will be forced to implement payroll changes and foot the bill. This article summarizes several highlights regarding what you need to know to comply by the effective date of the final rule, December 1, 2016.

Exempt vs. Nonexempt