Overtime / Exemptions – Final Rule Announced

Kathy State/Local/Federal

The new rule raising the salary threshold for minimum wage and overtime exemptions for common white-collar occupations (including many executive, administrative, professional personnel, and some others), under the Fair Labor Standards Act (FLSA), has now been set with an effective date of December 1, 2016.

 To qualify for the exemption under the FLSA, employees must meet certain job duty tests, and be paid on a salary basis, and at a salary level of at least $455 per week.  The new rule increases the salary level required for the exemption from $455 a week ($23,660 annually) to $913 a week ($47,476 annually), with future threshold updates slated to occur every 3 years, beginning on January 1, 2020.

 Additional details, with links to more information and resources, may be found at the official “Overtime Final Rule” webpage  https://www.dol.gov/whd/overtime/final2016/


Credit : IRV  MILJONER, District Director U.S. Department of Labor Wage and Hour Division Long Island District Office