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Paul Zimmerman

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Employer Alert: DOL Announces Final Rule Expanding Overtime Pay

President Barrack Obama and United States Department of Labor (DOL) Secretary Tom Perez have announced the publication of the Department of Labor’s final rule updating DOL overtime regulations, increasing the annual salary threshold that generally determines who qualifies for overtime pay under federal law.  The salary threshold will be doubled to $47,476 a year from $23,660.

According to the DOL, these new rules will extend new overtime protections to 4.2 million workers in the United States. The effective date of the final rule is December 1, 2016. If a worker makes less than $47,476, they will be eligible for overtime compensation under federal law regardless of their job title, duties, or job description. Employers now have six months to determine how they will account for this new overtime rule and adjust their wage and hour programs and policies to ensure compliance.

The full text of the Final Rule can be viewed here. Employers evaluating exemptions in light of this new rule should consult legal counsel.  

This blog post is not offered as, and should not be relied on as, legal advice. You should consult an attorney for advice in specific situations.