The Department of Labor Releases New Overtime Rules! What Does It Mean for Your Business and Employees?

As you may have heard, on May 18th, 2016 the Department of Labor released a final rule that drastically increases the number of employees eligible for overtime pay. Under the FLSA, employees who work more than 40 hours in a week are entitled to overtime pay, unless they meet the requirements of certain wage and duties tests.

The new rule nearly doubles the minimum salary threshold from $455 per week to $913 per week (which amounts to $23,660 annually and to $47,476 annually, respectively) and raises the exemption level for those considered to be “highly compensated employees” from $100,000 to $134,004 annual salary. What this means is that businesses will be required to either pay their employees for overtime, if their annual salary is less than $47,476, or raise their annual salary above the threshold of $47,476.

We understand the DOL rule change may impact major business decisions like hiring, expansion, offering new benefits or more flexible work arrangements for employees, and possibly even require reductions at your company. We can help you in assessing and implementing the effects of the new overtime-pay and determine which employees classify as non-exempt before the December 1, 2016 deadline.

Feel free to contact us if we can help in any way to guide you through this change or plan for the future.

If you would like more information on the DOL rule change, visit

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