Back in June 2016, one of GLM's Accountants was quoted in a article in the Daily Herald Business Section Article (see below). Ruth Kronvold said that there was no need to panic and to take the time to get the things done.
Ruth takes the helm of this Blog to discuss the Overtime Rule Changes that took effect 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.
Yes, this can be overwhelming, but your accountant should be able to help answer your questions about this. If they cannot, feel free to contact GLM.
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
ruthk@glmfinancial.com
847-884-1781 x33
Ruth takes the helm of this Blog to discuss the Overtime Rule Changes that took effect 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.
Yes, this can be overwhelming, but your accountant should be able to help answer your questions about this. If they cannot, feel free to contact GLM.
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
ruthk@glmfinancial.com
847-884-1781 x33
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