WASHINGTON, D.C. — The Department of Labor’s overtime rule has made business headlines the last several days, as it was issued preliminarily in 2015 and was announced recently as “final.” This new rule raises the overtime threshold from $23,660 to $47,476 and will become effective December 1, 2016.
With the final rule announced, several private and non-profit organizations are turning to Congress to encourage them to seek a legislative fix to the rule; this is a long shot. Court challenges on certain aspects of the rule are also expected. Individuals are encouraged to contact members of Congress to voice concerns on the implementation of this rule.
Quick facts on the rule (from DOL):
Focuses primarily on updating the salary and compensation levels for EAP workers to be exempt:
1. Sets the standard salary level to $47,476 annually
2. Automatically updates every three years
3. Employers will be able to use nondiscretionary bonuses and incentive payments to satisfy up to 10% of the salary level.
4. The duties test is not changing.
Links for more information: