U.S. Department of Labor Issues Final Overtime Rule

Posted on: May 20th, 2016 by NADO Admin

The U.S. Department of Labor (DOL) has released the final version of its rule on changes to the Fair Labor Standards Act’s (FLSA) salary threshold for overtime exempt workers.  Under current regulations, employers are required to pay all eligible employees time-and-a-half for any hours they work in excess of 40 hours per week if they make less than $23,660 per year.  The new rule includes several key changes to regulations governing overtime pay:

  • The new salary level for the executive, administrative, and professional exemptions will be $47,476 per year. Note that this is a slight reduction from the initial salary threshold included in the proposed rule issued in July 2015 of $50,449 per year.
  • The new levels will be effective on December 1, 2016.
  • The salary level will be increased automatically every three years beginning in 2020. The amount will be based on the 40th percentile of full-time salaried workers in the region in which the salary level is lowest.  The Department of Labor will publish the information in the Federal Register in advance of the increase.

Click here to view the final rule.  Click here (https://www NULL.dol NULL.gov/featured/overtime/) to view the Department of Labor’s website on the overtime changes and access fact sheets for state and local governments, non-profits, and more.

NADO will continue closely monitoring implementation of the final rule and will provide members with resources and guidance on responding to the new standards.  Please contact Susan Howard at [email protected] (showard null@null nado NULL.org) with questions.

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