By Sara J. Ackermann
May 17, 2016
Today the Department of Labor (DOL) announced its long-awaited rule expanding overtime protection for employees. The rule will go into effect December 1, 2016. Highlights include:
- Raising the salary threshold from $23,660 to $47,476 a year, or from $455 to $913 a week. Note: This is lower than the originally proposed $50,440, however, the rule includes a provision that would require the salary threshold to be updated every three years—with an expectation that it would rise to more than $51,000 in January of 2020. Also, up to 10% of an employee’s bonus/incentive payments can count toward the salary threshold.
- Raising the “highly compensated employee” threshold from $100,000 to $134,004.
- There are no changes to the “duties” test element of the exemption analysis.
For more detail regarding this Rule, see the DOL’s resource page. For more information, contact any attorney within our Employment, Benefits & Labor Relations team.
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