New Overtime Rule
On May 18, 2016 the Department of Labor released the final updated overtime rules. These rules were last updated in 2004. The main issues include the following:
- Raising the weekly salary from $455 to $913 for an annual salary of $47,476 up from $23,660.
- Allows up to 10 percent of the new salary level to be paid in the form of non-discretionary bonuses and incentive pay provided they are paid at least quarterly.
- Raises the highly compensated employee exemptions from $100,000 annually to $134,004.
- Will become effective December 1, 2016 and will automatically adjust every three years with the first one on January 1, 2020.
Please watch for our upcoming newsletter for more information on the new rules.