- U.S. Department of Labor Publishes New Overtime Rule
- August 24, 2016 | Author: Daniel W. Morris
- Law Firm: Clifton Budd & DeMaria, LLP - New York Office
The United States Department of Labor issued its long-awaited rule increasing the minimum salary for overtime eligibility. Effective December 1, 2016, the minimum salary threshold for most of the white-collar overtime exemptions will increase to $47,476 per year ($913 per week).
The rule also contains a provision that is designed to automatically increase the minimum salary level every three years, based on measured wage growth within the United States. The rule does not make any changes to the duties tests that determines whether white collar employees are exempt from overtime.
Employers that have employees that are currently exempt but do not meet the new salary threshold have a limited number of options for their affected employees:
- pay time-and-one-half for overtime work
- raise the employees’ salary to the threshold
- limit the employees’ hours to 40 per week
- some combination of the above