Department of Labor – Better get ready for that Dec. 1 deadline

by Deana G. Hollister, SPHR, SHRM-SCP, Managing Director, Power Kunkle HR Solutions, LLC

The Department of Labor issued recent changes that could substantially impact your business.  Are you ready?

The Final Rule becomes effective December 1, 2016 and it includes increasing the current $455 weekly minimum salary required for employees to qualify for “white collar” exemptions to the minimum wage and overtime requirements under the Fair Labor Standards Act (FLSA). The new salary basis will be $913 weekly.

As we know, the FLSA requires that covered employees be paid minimum wage for all worked hours and an overtime rate of not less than one and one-half times their regular pay rate for all hours worked in excess of 40 hours in a single workweek. To qualify for exemption from the FLSA’s minimum wage and overtime requirements, an employee must meet certain criteria.

Significant changes under Labor’s Final Rule include the following changes for exempt status:

Increase in the salary basis requirement. The Final Rule increases from $455 to $913, or $47,476 annually, the minimum weekly salary level necessary for employees to qualify for a white-collar exemption under the FLSA. This minimum weekly salary will adjust automatically every three years per the Labor Department.

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The information provided is for informational purposes only and does not constitute legal advice. The information above contains only a summary of the applicable legal provisions and does not purport to cover every aspect of any particular law, regulation or requirement. Depending on the specific facts of any situation, there may be additional or different requirements. This is to be used only as a guide and not as a definitive description of your compliance obligations.