New Overtime Exemption Rule

Overtime Exemption Rules ArriveThe Department of Labor (DOL) recently released the revisions to the white collar overtime exemption rule in the Fair Labor Standards Act (FLSA). The new white collar overtime exemption rule goes into effect on December 1, 2016.

The most significant change to the rules relate to the white collar exemption salary level. It was last set in 2004 at $455 per week or $23,660 per year. This salary level is now below the federal poverty level for a family of four, so the new standard has been changed to $913 per week or $47,476 per year.

For information on how a white collar employee qualifies for an overtime exemption—as well as the threshold for highly compensated employees and how to calculate salary— you can read the riveting 508 page document produced by the DOL, or you can download our 2 page Overtime Exemption Rules Arrive guide.

 

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