DOL Issues Changes In Overtime Rules

May 24, 2016 Curt

 

The DoL has issued new rules for overtime that go in to effect on December 1, 2016.  Overtime rules are regulated in the FLSA (Fair Labor Standards Act).  The FLSA provides exemptions from paying overtime to employees who meet all three the following three tests:

  1. Salary-level test: Employees must make above a certain threshold to be exempt.
  2. Salary-basis test: Employees must generally receive their full salary for weeks which they work, regardless of actual hours worked.
  3. Duties test: Responsibilities must meet the requirements of an administrative, executive, or professional position.

The salary-level test to get an exemption has gone up from $458 per week to $913.  That means employees making less than $47,476 per year will qualify for overtime.

If you are an employer who had employees previously qualified as exempt who no longer qualify, you will need to make some modifications to your payroll.  You may contact us if you have further questions.