Today, one of GLM's Accountants take the helm of the Blog to discuss the Overtime Rule Changes that took effect last Wednesday May 18th when the Department of Labor released the final overtime rule changes for white collar workers.
The new salary threshold is $47,476 per year or $913 per week. Companies have until 12/1/16 to comply with this. As of 12/1/16 anyone making less than $47,476 should be paid overtime regardless of their position or duties. Anyone making over $47,476 will still need to pass the other components of the overtime exemption duties test to be considered exempt. Companies that have salaried employees under this level will need to know and may need help with strategies for making the change.
There is also a change to the exemption salary for Highly Compensated Employees. The salary threshold is now $134,004 per year (up from $100,000).
Both these salary levels are set to increase every three years going forward, with the next increase set for 1/1/2020.
Useful Links:
https://www.dol.gov/whd/overtime/final2016/
https://www.shrm.org/legalissues/federalresources/pages/overtime-rule-hub.aspx
https://www.dol.gov/WHD/foremployers.htm#factsheets
Ruth Kronvold
[email protected]
847-884-1781 x33
The new salary threshold is $47,476 per year or $913 per week. Companies have until 12/1/16 to comply with this. As of 12/1/16 anyone making less than $47,476 should be paid overtime regardless of their position or duties. Anyone making over $47,476 will still need to pass the other components of the overtime exemption duties test to be considered exempt. Companies that have salaried employees under this level will need to know and may need help with strategies for making the change.
There is also a change to the exemption salary for Highly Compensated Employees. The salary threshold is now $134,004 per year (up from $100,000).
Both these salary levels are set to increase every three years going forward, with the next increase set for 1/1/2020.
Useful Links:
https://www.dol.gov/whd/overtime/final2016/
https://www.shrm.org/legalissues/federalresources/pages/overtime-rule-hub.aspx
https://www.dol.gov/WHD/foremployers.htm#factsheets
Ruth Kronvold
[email protected]
847-884-1781 x33
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