New DOL Overtime Exemption Rules

On May 18, 2016, the White House and Department of Labor released the anxiously awaited final changes to the white-collar exemptions under the Fair Labor Standards Act (FLSA). They will be officially published on May 23, 2016. These new rules will be effective starting December 1, 2016, but you should act now to ensure compliance within the next six months.

The Major Changes:

  • The minimum salary threshold is increasing to $913 per week or $47,476 per year from the previous $455 per week or $23,660 per year. This is more than double the current threshold.
  • The new salary threshold for highly compensated employees has increased to $134,004 from $100,000.
  • There have been no changes to the existing duties test. Teachers will also remain exempt under the professional exemption, even if they are paid less than the new minimum salary level.

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