On September 24, the U.S. Department of Labor (DOL) released the final rule increasing the salary threshold for white-collar exemptions to the federal overtime pay requirements under the Fair Labor Standards Act from $23,660 to $35,568. DOL has reaffirmed its intent to update the salary threshold more regularly, but did not include any mechanism to automatically update the threshold. The final rule does not make any changes to the duties test.
Employers will need to be in compliance with the new rule by January 1, 2020.
The DOL Wage and Hour Division’s much-anticipated final rule to expand overtime pay eligibility has been released. Now it’s time to focus on compliance. Join Alex Passantino, partner of Seyfarth Shaw and former acting administrator of DOL's Wage and Hour Division, to learn about the details and timeline for implementation.Watch the Recorded Webinar
A previous version of the overtime rule (which had a much higher threshold) was scheduled to go into effect on December 1, 2016, until an injunction stopping the rule was issued on November 22, 2016. In the months leading up to the implementation date of the previous rule, CUPA-HR surveyed institutions across the country to find out what actions they were taking in preparation for the change. Check out the 2016 infographic of the survey results.