The Department of Labor revised overtime regulations on May 18, 2016 which affect the Fair Labor Standards Act’s (FLSA) “white collar” overtime exemptions. The new regulations, effective December 1, 2016, increase the salary threshold needed to qualify for overtime exemption from $455 per week or $23,600 per year to $913 per week or $47,476 per year. This Final Rule updates the salary level required for exemption to ensure that the FLSA’s intended overtime protections are fully implemented, and to simplify the identification of overtime-protected employees.
Without intervening action by their employers, it extends the right to overtime pay to an estimated 4.2 million workers who are currently exempt. It also strengthens existing overtime protections for 5.7 million additional white collar salaried workers and 3.2 million salaried blue collar workers whose entitlement to overtime pay will no longer rely on the application of the duties test.
Use our calculators below to assist you in determining the best course of action for your organization.