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Department of Labor Announces Changes to Overtime Wage Rules

In a long-awaited move to extend eligibility for overtime pay, the Department of Labor announced today it would update the overtime regulations in a manner that will affect millions of American workers. Beginning on December 1, 2016, three key changes will take effect:
  1. The minimum salary requirement for exempt employees will increase from $455 per week ($23,660 per year) to $913 per week ($47,476 per year), which represents the 40th percentile of earnings of full-time salaried workers in the census region with workers earning the lowest wages (currently the southern region of the United States);
  2. The total compensation requirement for highly compensated employees subject to a minimal duties test will increase from $100,000 per year (including $455 per week) to $134,004 per year (including $913 per week), which represents the 90th percentile of full-time salaried workers nationally; and
  3. There will be a mechanism to update these salary and compensation levels automatically every three years to sustain the percentiles referenced in paragraphs 1 and 2 above.
Learn how to respond to this change, here.