On May 18, 2016, the U.S. Department of Labor (DOL) announced a final rule regarding overtime wage payment qualifications for the “white collar exemptions” under the Fair Labor Standards Act (FLSA). The final rule increases the salary an employee must be paid in order to qualify for a white collar exemption. Here are a few key points that employers should note:
- The salary level for administrative, executive and professional employee exemptions will increase to $47,476.
- The salary level for the highly compensated employee exemption will increase to $134,004.
- The required salary level will also be automatically updated every three years
- Employers will need to comply with this rule by Dec. 1, 2016.
Employers must be sure to become familiar with the new rule as soon as possible. In addition, employers may want to take some of the following steps:
- Identify which employees will be affected and reclassify employees as exempt or non-exempt, if appropriate
- Develop a communication strategy regarding any work schedule changes well ahead of the 12/1 deadline
- Evaluate whether implementing new timekeeping practices and training for managers and supervisors on the new requirements is necessary
For more information on this topic, we encourage all clients to log-in to the CBGconnect portal and download our Compliance Bulletin on this topic.
If you have any questions, please contact our team at 781-759-1222.