Final FLSA Rule Announced

The U.S. Department of Labor has announced new salary thresholds for employees to qualify for exemption from minimum wage and overtime under the Fair Labor Standards Act. Over 4 million workers are expected to be affected by the ruling and become entitled to overtime for hours worked in excess of 40 per week.

Effective December 1, 2016, the minimum salary level will increase to $47,476 per year ($913 per week). Under the ruling, the salary threshold will increase every three years to maintain the new standard. The current salary threshold of $23,660 per year ($455 a week) has been in effect since 2004.  

The rule also increases the total annual compensation requirement for Highly Compensated Employees from $100,000 to $134,004. This translates to overtime entitlement for more employees who perform only minimal administrative, professional or executive duties but are paid high salaries. This threshold will also increase every 3 years.

Watch for upcoming BDB updates on how this ruling may affect your business and what you can do now to prepare.

For the U.S. DOL release click here.