Archives for March 2016

New FLSA Overtime Exemption Rule – Get Ready!

The Department of Labor’s long-awaited proposed rule that would significantly expand the number of workers eligible for overtime compensation is anticipated to go into effect in the next 30-90 days.  If implemented, the new rule will more than double the minimum salary required to be eligible for exempt status from $455 per week ($23,660 per year) to $970 per week ($50,440 per year).  If a worker does not earn this minimum salary threshold, he/she will not be eligible for exempt status, even if the job otherwise meets the exempt duties test.  There are indications that the new rule may include some changes to the exempt duties test that would make it harder to qualify as exempt.

What does this mean for your organization?  You should identify those workers who are currently classified as exempt and earn less than $50,440 per year.  Under the proposed rule, they will automatically lose their exempt status because they don’t meet the minimum exempt salary threshold.  If the rule introduces changes to the duties test, additional exempt positions may need to be examined to ensure they continue to qualify for exempt status.

We are available to assist your organization understand and properly respond to these the changes contained in the proposed rule.