Final Overtime Rule Announced
The U.S. Department of Labor (DOL) announced the release of its highly anticipated final overtime rule, which expands overtime protections to millions of workers across the U.S.
The final rule updates the overtime regulations under the Fair Labor Standards Act by raising the salary threshold from $23,660 per year ($455 per week) to $47,476 per year ($913 per week) for the executive, administrative, and professional (white collar) exemptions.
Additionally, the final rule will: ensure the salary threshold is updated every three years; raise the “highly compensated employee” (HCE) annual salary threshold from $100,000 to $134,004; make no changes to the “duties test” under the white collar exemptions; and allow bonuses and incentive payments to count toward up to 10 percent of the new salary level.
According to the DOL, the rule will take effect on December 1, 2016. All details can be found at: https://www.dol.gov/WHD/overtime/final2016/