In 2014, President Obama signed a Presidential Memorandum directing the Department of Labor to update the regulations defining which white collar workers are protected by the FLSA’s minimum wage and overtime standards.

On May 18, 2016, The Department of Labor has published new rules that will affect many employers by requiring that they pay overtime to certain employees. The new rules, which go into affect Dec 1, 2016, will affect many employers in other ways as well.

Highlights of the new rules:

  • Salaried employees who earn less than $47,476 annually must be paid overtime, regardless of their title or duties.
  • Employees earning between $47,476 and $134,004 annually must be paid overtime unless they are “white collar” workers, such as those in executive, administrative and professional positions.
  • Employees earning more than $134,004 are not required to be paid overtime, regardless of the nature of their title or duties.  
  • The thresholds described above will be updated every three years, with the first update occurring in 2020.

All employers should review the status of their pay policies in light of these new rules. It is also wise to talk with your employment attorney about this new law. Additional information can be found on the Department of Labor Web Site: https://www.dol.gov/whd/overtime/final2016/

Source: The Gavel