Annual Salary Threshold Raised to $50,440
According to the semiannual regulatory agenda published on November 19, 2015, the U.S. Department of Labor (DOL) now plans to release its final rule on overtime pay in July 2016.
The proposed rule would raise the current Fair Labor Standards Act (FLSA) salary threshold for exempt executive, administrative, and professional “white collar” employees from $455 a week ($23,660 a year) to $970 a week ($50,440 a year) in 2016.
A notice of proposed rulemaking seeking comments was published by the DOL in July 2015. Over 300,000 comments were received. It’s anticipated that the final rule could extend overtime protections to as many as 5 million white collar workers who currently are exempt from the FLSA’s overtime requirements.
In anticipation of the final rule, employers should evaluate whether job classifications presently classified as exempt will still qualify as exempt under the new rule and consider what adjustments, if any, may be necessary before the final rule takes effect.
If you have questions about what this rule will mean for your business and operations in 2016, call Tom Bagby at 540-983-7766.