Just a note that, as of 11/22/16, the Federal Court has blocked the Overtime Rule. We firmly believe, even more now than ever, in the importance of understanding and applying overtime rules. This article will be updated! – Doris 11/23/16.
Yesterday,(May 18, 2016) the Department of Labor issued a new rule that updates the regulations determining which white-collar, salaried employees are entitled to the Fair Labor Standards Act’s minimum wage and overtime pay protections. The rule increases the salary threshold below which most white-collar, salaried workers are entitled to overtime from the current $455 per week (or $23,660 for a full-year worker) to $913 per week (or $47,476 for a full-year worker). This includes employees in organizations that are employed in a bona fide executive, administrative or professional capacity.
The DOL writes that this is a modernization of an old rule, but this rule may have a major impact on all businesses, especially small business with regard to their payroll, budgets and job descriptions.
This new rule goes into effect on December, so there is time to develop a strategy that is best for your organizations. To receive help in developing such a strategy, contact us or schedule a coffee break!