The unending wave of government regulations continues and beginning on December 1, 2016, employees who earn less than $47,476 a year are now eligible for overtime under a final rule approved by DOL. The new rule applies to all businesses subject to the Fair Labor Standards Act, which is virtually all businesses. The rule:
- Sets a new salary level for the executive, administrative and professional exemptions to Fair Labor Standards Act overtime rules at $913 per week, or $47,476 annually (the current threshold is $455 per week, or $23,660 annually).
- Makes no changes to the "duties test" as it currently exists
- Requires the salary threshold to be updated every three years and tied to the 40th percentile of full-time salaried workers in the lowest-wage region of the U.S.
- Allows employers to use non-discretionary bonuses and incentive payments to satisfy up to 10 percent of the standard salary level; however, those payments must be made on a quarterly (or more frequent) basis.
FRSA members can access more information and the "duties tests" through the "Member Login" in section of the website, under the "Human Resources" section.