DOL final overtime rule doubles salary threshold for exemption
The Labor Department's final rule on overtime exemptions will more than double the salary level used to determine whether employees are exempt from overtime under the Fair Labor Standards Act.
From Dec. 1, 2016, the level jumps to $913 a week, or $47,476 annually. The threshold for "highly compensated employees" will increase to $134,004. Both thresholds will be updated every three years. While the salary threshold offers more of an initial "bright line" test for exemption, the FLSA's general framework, including the "duties test," remains unchanged. Congress is expected to try to block implementation.
- Elliot Bernak, Mercer's Washington Resource Group
- Zara Santos, Mercer's Washington Resource Group