– Effective December 1, 2016, millions of employees may need to be reclassified as “non-exempt” and paid overtime if they work more than 40 hours in a workweek.
– The Department of Labor (DOL) issued changes that substantially increase the minimum salary requirements of the Fair Labor Standards Act (“FLSA”).
– The salary threshold to qualify for an executive, administrative, or professional employee exemption has increased to $47,476 per year after December 1, 2016. – Highly compensated employees must have a salary exceeding $134,004 and perform exempt duties.
– Salary thresholds for highly compensated employees will increase every three years starting January 1, 2020.
– Employers can use bonuses and commissions to satisfy up to 10% of the minimum salary requirement for certain exemptions.
– The changes aim to ensure that extra work means extra pay, and employers should understand and comply with the overtime rules.
https://www.knott-law.com/overtime-rule-changes-effective-december-1-2016/
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