The Department of Labor has published its final rule on new overtime regulations. This update to the Fair Labor Standards Act increases the annual salary threshold for exempt status from $23,660 to $47,476, effective Dec. 1, 2016.
Any employee making less than $47,476 per year ($913 per week) will have to be paid time and a half for hours worked in excess of 40 hours per week. The Department of Labor estimates the new rule will apply to 370,000 workers in Texas and 4.2 million people nationwide.
Employers have a limited amount of time to prepare before the new rule takes effect. Click here to read our tips to prepare for the new overtime regulations.
Additionally, the final rule raises the salary threshold for Highly Compensated Employees from $100,000 to $134,004. It will allow up to 10 percent of the salary threshold for non-HCE to be met by bonuses and incentives. The final rule also establishes a process for the salary threshold to be automatically updated every three years.
Review the final rule, key provisions, fact sheets and guidance for businesses on the Department of Labor website. Achilles Group can help your business prepare for and implement the new rule. Talk to one of our experienced HR professionals at 281-469-1800.
