In May 2016, the United States Department of Labor (DOL) issued its heavily anticipated Final Rule regarding overtime exempt status for “white collar” workers. The Final Rule will raise the minimum annual salary threshold for exempt workers to $47,476 ($913 per week). The new threshold will automatically increase every three years.
The Final Rule gives businesses more than six months to comply, as the rule has an effective date of December 1, 2016. It also allows employers to count nondiscretionary bonuses, incentives and commissions toward up to 10 percent of the required minimum salary, so long as employers pay those amounts on at least a quarterly basis.
Employers need to prepare for the implementation of the Final Rule. We can help employers with strategies for complying with the Final Rule as well as assist them with identifying strategies for managing costs associated with the implementation of the new rule.
For more information, please contact us.