The U.S. Department of Labor has finally released its final rules on the new requirements for exemption from overtime. The good news is that the new rules will not become effective until December 2016, so you and/or your corporate clients have time to prepare accordingly. Currently, exempt employees such as qualified administrative employees, supervisors, and professionals making at least $23,660 a year or $455 a week are exempt from time and a half overtime pay for work done beyond 40 hours a week under the Fair Labor Standar ds Act. The new rules will significantly raise the threshold pay to $47,476 a year /$913 a week. Arguably, more employees will become eligible to receive overtime pay from their employers when the new rules become effective in December. The DOL plans to update the earnings requirements for exemption every three years, making it likely that the threshold will be more than $51,000 a year by 2020 and that even more workers will join the non-exempt fold.
You can access the White House’s Press Release by clicking on this link