May 19, 2016

The Overtime Rule

By Linda Marie Pearson, CPA, CFE
 
On May 18, 2016, the U.S. Department of Labor (DOL) published final regulations defining those employees exempt from overtime.  The new rule (aka The Final Rule) updated the salary and compensation levels of executive, administrative and professional employees.  Effective December 1, 2016, it has:
  • Set the standard salary level at $47,476 annually for a full-year worker;
  • Set the total annual compensation requirement for highly compensated employees subject to a minimal duties test to $134,004; and
  • Established a mechanism to automatically update the salary and compensation levels every three years.
For more details, click on the following link to read the DOL’s Fact Sheet. https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.htm
Now is the time to evaluate the impact of this law. Discuss with your accountant and attorney the impact that this law will have on your operations and cash flows, as well as your options for complying with the new salary threshold.
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