Show Me the Money
Nov. 14, 2016
On December 1, 2016 changes go into effect regarding who is eligible for overtime pay! Earlier this year the Department of Labor created new rules that will affect large numbers of employees and whether they can receive overtime pay for their work.
The Department of Labor approved what is referred to as the "Final Rule" which focuses primarily on making updates to the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. In summary, the Final Rule provides the following criteria for compensating for overtime pay:
1. Changed the standard salary level for workers from $455 per week to $913 per week or $47,476 annually for a full-year to be exempt from overtime pay;
2.Changed the pay rate for highly compensated individuals from $100,000 to $134,004 subject to the "minimum duties test" (the employee’s job duties must primarily involve executive, administrative, or professional duties as defined by the regulations (call us for more information); and
3.These threshold amounts can be changed after review every three years to maintain the levels at the above levels and to ensure that they continue to provide useful and effective tests for exemption.
Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.
Thanks President Obama for "showing us the money"!
Contact The Montgomery Law Firm to help with your wage and hour issues.
Monday Morning Lawyer Q & A
Q: If I am paid on a salary basis, does that mean I cannot receive overtime pay?
A: No. One can be paid on a salary basis and still be eligible for overtime pay. Your title does not determine whether you receive overtime either. The Department of Labor will look at a number of factors, including salary level and job duties.
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