On May 18, 2016, the Department of Labor (DOL) released a new rule overhauling overtime wage payment in the United States. The new rule will more than double the salary threshold that employees must meet to qualify for the overtime wage exemption.
Under the new rule, the salary threshold will increase from $23,660 to $47,476 per year. It also increases the salary threshold for highly compensated individuals from $100,000 to $134,004 per year. The salary threshold will be updated every three years.
Millions More will be Eligible for Overtime Pay
This new rule could affect more than 4 million workers in the United States. According to estimates from the DOL, employers will spend more than $592 million to comply with the new rule. Employers who fail to implement overtime changes could be subject to lawsuits, criminal charges, fines and restrictions in commerce.
When do I have to comply?
Employers have until Dec. 1, 2016, to comply with this new rule. Delaying preparation efforts could result in headaches down the road and costly penalties. For more information on the new overtime rule, contact your broker today.
What is my company’s Level of Exposure?
Use our FSLA Overtime Rule Risk Scorecard to evaluate your company’s risk for increased costs, fines, and lawsuits. Wage and hour lawsuits are more popular than equal opportunity lawsuits and with the new rules, the DOL will be watching. Make sure you are compliant, and be sure to contact your Deland, Gibson advisor with any questions.
Click here to download a PDF of our FLSA Overtime Rule Risk Scorecard
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Margaret Short, Vice President of Benefits and HR at Deland, Gibson, consults with companies to analyze Workforce risk and create a plan of action to assure compliance with state and federal regulations.[/fusion_builder_column] Stay informed on issues that impact your business and personal risk levels: Subscribe to The Advisor.[/fusion_builder_row][/fusion_builder_container]