UPDATE 11/22/16 On Tuesday November 22, 2016 U.S. District Judge Amos Mazzant halted a federal rule that would have expanded overtime pay to roughly 4.2 million workers. The New FLSA overtime regulations were going into effect on December 1, 2016 and would have increased the salary threshold for exempt employees to $913 per week or $47,476 annually, nearly doubling the current salary threshold of 23,660. The block issued temporarily suspended the “overtime” regulations and was a result of states and businesses challenging the Department of Labor’s ability to set laws. This injunction will allow the judge more time to generate a conclusion on the DOL’s new regulations. If you have any questions about how either the rules or the block will affect you, please call our office and we would be happy to discuss them with you.PREVIOUS POST 11/21/16 Do you have salaried employees? New FLSA regulations effective December 1, 2016 may change that. The Department of Labor updated the regulations defining in part, who qualifies as an exempt or salaried employee. The main changes to the regulations include:
- An increased salary threshold for full-time salaried workers to $913 per week or $47,476 annually.
- An increased annual compensation for exempt, highly compensated employees of $134,004 annually.
- Non-discretionary bonuses, incentive payments, and commissions paid at least quarterly, can be counted towards up to 10% of the salary threshold.
- The salary threshold is to be increased every three years going forward.
There are some options available if you expect this to affect you or your employees. Please feel free to contact us if you are in need of assistance with these new regulations.