The bottom line on the FLSA changes.
I am sure many have seen the news about the newly signed update to the FLSA. The important components of the new rule are:
- The new threshold for the executive, administrative and professional overtime exemptions is $47,476 per year – more than double the current threshold - and this threshold will now be updated every three years.
- Employers may use nondiscretionary bonuses and incentive payments, including commissions, to satisfy up to 10% of the new standard salary levels, with the caveat being that these payments must be paid on at least a quarterly basis (but the employer can make a “catch-up” payment).
- The new minimum salary to qualify for the "highly compensated" employee exemption to $134,004 per year.
- The new rule take effect December 1, 2016