On May 23, 2016, the United States Department of Labor, Wage and Hour Division (DOL-WHD), issued its final rule relating to overtime requirements under the Fair Labor Standards Act (FLSA). The new rules become effective December 1, 2016. This gives employers six short months to figure out how to comply with the new requirements. The most significant change is raising the salary threshold from $455 per week to $913 per week, which on an annualized basis represents an increase from $23,660 to $47,476.
What does this mean for the typical employer? It means most salaried “exempt” employees earning less than $47,476 a year will no longer be eligible for the old overtime exemption. If they work overtime (e.g. more than 40 hours per week), they must be paid overtime wages. Employers must figure out a strategy for employees who were previously treated as exempt. Weston Hurd LLP can help employers determine what options are available for employees who are directly impacted by the new overtime rules.
Also, it is expected that the Department of Labor will commit significant resources to enforce the new rules.
Employers should anticipate that, if the DOL-WHD comes calling, they will also be interested in reviewing job descriptions to determine if any misclassification issues exist. Weston Hurd can also assist employers with this review.
For help in understanding these new rules and insuring that your company is compliant, please contact your Weston Hurd attorney.