Breaking News!  FLSA Overtime Regulations Final Rule Released

On May 18, the Department of Labor (DOL) released its final regulations making changes to Part 541 governing overtime exemptions under the Fair Labor Standards Act (FLSA). The final rule includes a significant increase to the salary threshold at which most salaried workers become eligible for overtime pay, raising it from $23,660 to $47,476 per year. As well as automatic increases in the future. These will present considerable challenges to employees and employers

Here are the key elements of the new regulation that you need to know now:

1. The salary threshold changed to $913/week ($47,476 per year).

2. There will be an automatic salary threshold increases every 3 years (not annually) to maintain level at the 40th percentile in the lowest-wage census region.

3. The duties test is unchanged.

4. The final rule will go into effect on December 1, 2016, providing additional time for employers to prepare rather than the standard 60 days.

5. The highly compensated employee (HCE) exemption is now $134,004 per year. The final rule retains the methodology in the proposed rule setting the threshold at the 90th percentile of full-time salaried workers nationally.

Organizations should review their current workforce immediately to determine which employees are affected, whether to re-classify those employees, and execute a communications strategy. A regular review process for ongoing increases needs to be put in place.

#FLSA #overtime #overtimerule #DOL

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