HIGHLIGHTS
• The salary level for administrative,
executive and professional
employee exemptions will increase
to $47,476.
• The salary level for the highly
compensated employee exemption
will increase to $134,004.
• The final rule does not change the
duties test for white collar
exemptions.
IMPORTANT DATES
May 18, 2016
The DOL announced a final rule
updating white collar exemption
qualification requirements.
December 1, 2016
The final rule becomes effective.
Employers are required to comply
with the final rule by this date.
Provided By:
Marshall & Sterling Insurance
DOL Issues New Overtime
Payment Rules
OVERVIEW
On May 18, 2016, the U.S. Department of Labor (DOL) announced a
final rule regarding overtime wage payment qualifications for the
“white collar exemptions” under the Fair Labor Standards Act
(FLSA).
The final rule increases the salary an employee must be paid in
order to qualify for a white collar exemption. The required salary
level is increased to $47,476 per year and will be automatically
updated every three years. The final rule does not modify the duties
test employees must meet to qualify for a white collar exemption.
Employers will need to comply with this rule by Dec. 1, 2016.
ACTION STEPS
Employers must become familiar with the new rule and identify
which employees will be affected. Employers should reclassify
employees as exempt or non-exempt, as necessary, by Dec. 1,
2016.
Employers should also consider communicating any work
schedule changes to affected employees before the date
mentioned above.
Finally, employers should evaluate whether implementing new
timekeeping practices and training for managers and supervisors
on the new requirements is necessary.