Webinar 5/25: How will the latest DOL overtime rules affect your business?
May 19, 2016
On May 18, 2016, the Department of Labor released its final regulations making changes to Part 541 governing overtime exemptions under the Fair Labor Standards Act (FLSA). These changes will make overtime pay appropriate for many employees not currently eligible.
Join us next Wednesday, 5/25 (9-10:30 am) for a webinar presented by Matt Maguire, Pepper Hamilton, to explore the extent of these changes and what they mean to your organization.
Key Provisions of the Final Rule
The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:
- Sets overtime eligibility at $913 per week; $47,476 annually for a full-year worker;
- Sets highly compensated employee exemption status at $134,004; and
- Establishes a mechanism to automatically update salary and compensation levels every three years.
- Amends the salary basis test to allow employers to use non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.
The effective date of the final rule is December 1, 2016.