The Final Overtime Rule Changes
Update: On November 22, a U.S. District ruled in favor of an injunction blocking the final overtime rules from being implemented on December 1, 2016. At this time, we are awaiting more information on updates to the rule and the final implementation date.
If you have implemented changes already, we recommend businesses not change any plans, pay structures, or policies that have been updated.
In May 2016, the Department of Labor announced revised regulations which affect the Fair Labor Standards Act’s “white collar” overtime exemptions. The new regulations increase the salary threshold needed to qualify for overtime exemption from $455/week ($23,600 per year) to $913/week ($47,476/year).
Any business that employs workers with salaries under $47,476 will be directly affected by the new regulations and needs to consider their best course of action for each affected employee.
Over 60% of Businesses May Be Affected
According to Paycor data, 64% of businesses will be affected by this update.
Employers should prepare their organization to comply with these updates.
This information is not intended as legal advice. You should seek specific legal advice before acting with regard to the subjects mentioned herein. Any calculations contained herein are for example purposes only.
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