New Overtime Rule Released by the Department of Labor

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On May 18, 2016, the Department of Labor released the long anticipated final regulations regarding the exemption from overtime pay.

What you need to know:

  • New rule raises the salary threshold from $455/week and $23,660/year to $913/week and $47,476/year – (estimated by DOL to affect 76,000 workers in Washington State and 4.2 million in the USA).
  • The salary threshold amount will be updated automatically every three years, based on wage growth over time.
  • No changes to the duties test for Executive, Administrative and Professional employees.
  • Effective December 1, 2016.

What you need to do:

  • Identify exempt employees paid less than $913/week and $47,476/
  • Take the opportunity to determine if these folks actually meet the duties test of an Executive, Administrative or Professional employee. (Maybe consult with experienced employment lawyer about this!)
  • Make a decision whether to
    • raise pay above threshold amount, or
    • pay overtime over 40 hours, or
    • limit hours to 40 in a week. AND
  • Attend the Helsell Fetterman Spring Employer Breakfast briefing about this very topic on June 2nd!!! Sign up here:

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