The long awaited changes have gone into effect and the Department of Labor has issued the Final Rule for overtime exemption.
This exemption concerns domestic workers under the Fair Labor Standards Act (FLSA) including administrative, professional, and highly compensated employees. The FLSA covers employees in the private sector as well as Federal, State, and local governments by establishing minimum wage, overtime pay, record keeping, and youth employment standards. Employers have time to prepare for implementation of this new provision of the Final Rule, but should consider their options for responding to the updated salary level requirement promptly.
Thresholds under the final rule relating to the overtime exemptions are as follow:
- Individuals who earn a salary under $47,476 are eligible for overtime payment, which is a significant increase from the prior threshold of $23,600.
- Highly compensated individuals who earn over a salary $134,004 are exempt from overtime.
The Final Rule takes effect December 1, 2016.
