UPDATE (Nov. 23, 2016): A federal judge has halted enfocement of the Department of Labor’s overtime rule until further notice. Read more from USA Today.
For certain administrative, executive and and professional employees, it sometimes takes more than 40 hours a week to get the job done. For some employers, putting those workers on salary (also called exempt because they are exempt from overtime rules) makes more sense than paying by the hour.
Effective Dec. 1, 2016, the Department of Labor has revised the minimum salary requirement for exempt workers to $47,476 annually ($913 per week).
For years, the federal government has set the minimum salary for white collar workers, and next year, there’s going to be a change.
Effective Dec. 1, 2016, the Department of Labor has revised the minimum salary requirement for exempt workers to $47,476 annually ($913 per week). In addition, the minimum salary level is going to be automatically adjusted every three years.
Employers have a few options. They can take now action if an employee already meats that salary threshold, they can raise the employee’s salary to at least $47,476, or they can reclassify that employee, making them eligible for overtime pay.
Employers that are facing likely reclassification of employees should prepare an effective communication plan. Many employees will view the loss of exempt level status as a demotion. This will be especially true if the classification change removes other perks or benefits that the employee is accustomed to.
To learn more, sign up to receive a free White Paper about the overtime rule changes.