The Department of Labor has announced updates to 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 $684/week ($35,568/year).
Employers have a choice to make. What’s the most cost-effective way to pay your employees and stay compliant? Should impacted employees receive a raise to meet the new threshold? Or, does it make more sense to reclassify them as nonexempt and pay them overtime?
Use our Calculator to understand how your budget will be impacted.
The amount owed to your employee if you opt to reclassify their status to nonexempt: