Department of Labor Overtime Rule — Changes go into effect Dec. 1
In 2014, President Obama directed the Department of Labor (DOL) to update the overtime regulations. The final revised rule came out in May and it will go into effect Dec. 1 this year. The final rule may directly impact YOUR BUSINESS — make sure you are prepared for the changes by reviewing the rule and relevant documents being provided by the Department of Labor at
. In short, the rule:
Raises the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year).
Automatically updates the salary threshold every three years, based on wage growth over time.
will be allowed to satisfy 10 percent of the minimum salary threshold.
The bonuses and commissions can be paid quarterly and catch-up payments can be made within one week of the end of the quarter.
The final rule will become effective on Dec. 1, 2016. The final rule does not make any changes to the duties test for executive, administrative and professional employees.
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