Today, the Department of Labor (DOL) issued its much anticipated final rule expanding overtime eligibility. The final rule sets the minimum salary threshold for overtime exemption at $47,476. Under the new rule, all salaried employees making less than $47,476 must be paid overtime for all hours worked over 40 in a regular work week, no matter their duties. This new rule will go into effect on December 1, 2016.
Although the final salary threshold is somewhat lower than the initial threshold proposed in July 2015, the DOL still anticipates the new threshold will result in over four million employees becoming eligible for overtime.
As we have advised in prior client alerts, it is important that employers undertake a thorough review of their pay practices to determine whether any of their salaried employees are at or near the $47,476 threshold. More detailed recommendations for employers to comply with the new law will follow.
If you have any questions about the final rule, please contact your Weston Hurd attorney.