Department of Labor Announces Changes to Overtime Pay Regulations

On May 18, 2016, the Department of Labor’s final rule updating the overtime regulations for the "White Collar" exemptions of the Fair Labor Standards Act "FLSA".  The final rule will go into effect December 1, 2016.

Key Provisions of the Final Rule include:

  1. Increase the salary requirements from $455 to $913 per week for an employee to be exempt from overtime;
  2. Increase  the Highly Compensated Employee total annual compensation requirement from $100,000 to $134,000.
  3. To automatically review these figures and requirements every three years and adjust as needed.

Employers may use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary requirements.

Visit the Department of Labor's announcement page for additional information below.