Lisa Satonick, SPHR, SHRM-SCP, explains breaking news regarding The Fair Labor Standards Act:
After months of speculation about the final rule, the Department of Labor announced on Wednesday that the new minimum salary threshold for overtime exemption will be $47,476 as of December 1, 2016.
With the new rule in place, all salaried employees making less than $47,476 must be paid overtime for all hours worked over the 40-hour regular work week limit, regardless of their duties. According to the DOL website, over 4 million workers will be affected by the change, including 134,000 workers in Ohio. Paycor estimates that 64% of businesses across the nation will be affected.
The new threshold is almost a 100% increase from the current threshold of $23,660. Additionally, the salary threshold will automatically update every three years.
In the six months that businesses have to prepare for this change, Corrigan Krause advises that business owners review their pay practices to determine if any of their employees will be affected by the change. Please, contact me if you would like to discuss the new rule’s effect on your company.