Proposed DOL Overtime Changes Explained
The U.S. Department of Labor (DOL) recently issued a Notice of Proposed Rulemaking for changes to the Fair Labor Standards Act’s “white collar” overtime exemptions.
One of the changes may affect the overtime pay owed to Salaried Exempt Employees. The change calls for more than doubling the minimum salary an employee must earn to be exempt from overtime pay. The proposed regulations increase the salary threshold needed to qualify for overtime exemption from $455/week ($23,600 per year) to $913/week ($47,476/year).
According to Paycor data, approximately 2 out of every 3 businesses will be affected by this DOL overtime update.
Here's a quick review of how this may affect your company.
_DOL RULES 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._