DOL Overtime Changes Go For Final Review
Department of Labor Proposed Changes
The Department of Labor proposes to update the regulations governing which executive, administrative, and professional employees (white collar workers) are entitled to the Fair Labor Standards Act’s minimum wage and overtime pay protections. Key provisions of the proposed rule include: (1) setting the standard salary level required for exemption at the 40th percentile of weekly earnings for full-time salaried workers (projected to be $970 per week, or $50,440 annually, in 2016); (2) increasing the total annual compensation requirement needed to exempt highly compensated employees to the annualized value of the 90th percentile of weekly earnings of full-time salaried workers ($122,148 annually); and (3) establishing a mechanism for automatically updating the salary and compensation levels going forward to ensure that they will continue to provide a useful and effective test for exemption. The DOL last updated these regulations in 2004, which, among other items, set the standard salary level at not less than $455 per week.
These changes will most likely take effect late summer or early fall. Make sure that this rule change is on the radar of company decision-makers.
Microsoft Implementations, Enterprise Solutions Architecture
9 年I must admit some confusion- does this mean that full-time salaried workers making less that $55,440 will have to be paid overtime? And how does that impact "highly compensated" employees- meaning if I make $90,000 am I a Full time salaried worker and exempt or am I a "highly compensated" employee and not exempt? This is very unclear.