Department of Labor Changes Overtime-Pay Rules

07.21.2016

The United States Department of Labor has issued a new rule defining the requirements for employees to have exempt status from the overtime-pay rules.  Exempt employees are paid on a salary basis and do not receive overtime when they work more than 40 hours per week.  The new rule becomes effective on December 1, 2016. 

Under the new rule, the minimum salary to qualify as an exempt employee will be raised from $23,660.00 to $47,476.00.  The minimum salary requirement will be adjusted every 3 years.  Non-discretionary bonuses and incentive payments, up to a certain amount, can be counted toward the required salary amount. The categories of employees who are eligible for exempt status, pursuant to the “duties requirement” that must also be met in order to qualify for exempt status, remain unchanged.  

Click for a DOL fact sheet PDF here describing the new rule.            

This new regulation could have a substantial impact on your organization.  Please contact Steve Marso at 515-288-6041 if you have any questions regarding the new rule or changes to your compensation and payroll practices to ensure that you comply.

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