NEW overtime rules announced
The moment businesses have been waiting for since its initial inception in July 2015: the proposed FLSA overtime rule has been finalized. The DOL published the updates on their website after President Obama made the final announcement the evening of Tuesday, May 17th.
The newly finalized FLSA overtime rules include the following provisions:
- Workers who do not meet the new salary threshold of $47,476 annually [$913 per week] will now have to be paid overtime
- The total annual compensation requirement for highly compensated employees [HCE] is now set to $134,004, which is the annual equivalent of the 90th percentile of full-time salaried workers nationally
- Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption
Employers will have to comply with the final ruling by December 1, 2016. For more details on the final ruling, visit the US Department of Labor, The White House, and the Society of Human Resource Management.