U.S. Department Of Labor Changes Overtime Rules For Millions Of Employees

What Employers Need to Know.

Earlier this week, the United States Department of Labor issued a Final Rule which increases the number of potential salaried employees who may be entitled to overtime pay.

Which Employees Are Affected by the Final Rule?

Many types of employees who make less than $47,476.00 in salary per year are now entitled to receive overtime in the amount of one and a half times their base hourly rate of pay for every hour worked over 40 per week.

How Did the Rule Change?

Previously, salaried employees who made more than $23,660.00 were potentially exempt from the overtime pay requirement under the “White Collar Exemption” of the Fair Labor Standards Act.

What About Future Increases?

The Final Rule includes an automatic adjustment to the salary threshold for eligible employees based upon wage growth over time.

When Does the Final Rule Become Effective?

The Final Rule goes into effect on December 1, 2016.

Bottom Line:

Employers should be aware of the Final Rule and work with an attorney to develop an individualized strategy in order to comply with the Final Rule and limit the potential for unforeseen, unintentional violations of the Final Rule.  For further information or questions, please contact either George Randolph or David Black in Riley Riper Hollin & Colagreco’s Labor and Employment Practice Group at (610) 458-4400.


For More Information, Contact: George B. Randolph

© 2016. This publication is intended for general informational purposes only and does not, nor is it intended to, provide the reader with legal advice of any kind. This publication does not, nor is it intended to, create any attorney-client relationship. Readers should consult with their own attorney to discuss the legal implications of any content in this publication to their particular situation.

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