|Reminder: New Labor Regulations Effective December 1
Updated Overtime Eligibility
Are new regulations on your business’ holiday wish list? If so, you can thank the Department of Labor for delivering a revised regulation that will effect an estimated 4 million employees starting in December. Under the Fair Labor Standards Act, most employees are entitled to minimum wage and overtime pay protections. However, the Act also carves out certain classes of employees that are not entitled to these wage protections. These employees are exempt from the requirements and, as such, the two classes of employees are called “non-exempt” and “exempt.” The broadest class of exempt employees are executive, administrative and professional employees with predetermined fixed salary requirements. The current weekly salary level for these exempt employees is $455 (or $23,660 annually). The new rule, which is effective December 1, 2016, will increase the weekly salary level requirement to $913 (or $47,476 annually). Employers will be forced to either raise exempt employees’ salaries to the increased requirement so they retain their exempt classification or to re-classify the employees as non-exempt at the same pay rate and pay overtime when applicable. Additional information is available on the Department of Labor’s website at www.dol.gov. As in-house counsel from the outside for closely held companies, Sanford, Pierson, Thone & Strean, PLC, provides creative and personalized solutions to navigate regulatory requirements such as these. Follow our firm at www.ssmnlaw.com.