The Department of Labor (DOL) released its final regulation governing overtime exemptions for the Fair Labor Standards Act (FLSA). The new rule affects most employers that have salaried employees with a new threshold of $913 a week for an annual wage of $47,476 per year. If your salaried employees make less than this then you need to track hours and pay any overtime worked during that week. Please see our recent blog that will give you some additional info on the changes.
A couple of the main points from this law are:
1. New salary threshold changed to $913 per week and $47,476 annual.
2. Threshold increases every 3 years and will be indexed to the 40th percentile in lowest wage census region.
3. Salary Duties test Unchanged
4. Effective December 1, 2016
5. Highly Compensated Employee (HCE) exemption is now $134,004 per year
For more information, you can review the DOL’s article on this update.
StaffScapes will be working with it clients over the coming weeks to educate and plan for the changes that go into effect on December 1, 2016. If you have questions please call StaffScapes at 303-466-7864 and we can address any concerns you have.