On May 18, 2016, the Department of Labor (DOL) released a final rule that radically increases the thresholds for overtime rules, expanding the number of employees eligible for overtime pay.
Under the Fair Labor Standards Act (FLSA), employees who work more than 40 hours in a week are entitled to overtime pay, unless they meet the requirements of certain wage and duties tests. The new rule doubles the minimum salary threshold from $455 per week to $913 per week (which amounts to $23,660 annually to $47,476 annually) and raises the exemption level for those considered to be "highly compensated employees" from $100,000 to $134,004 annual salary.
HBK CPAs & Consultants understands that the DOL rule may impact major business decisions such as hiring, expanding services, offering new benefits and/or more flexible work arrangements for employees, and may possibly even require reductions at your company. Companies will have until December 1, 2016, to make determinations on which employees to reclassify as nonexempt and implement the changes.
We can help you in assessing the effects of the new overtime-pay rule and our team has the expertise to guide you through this change as you plan for the future. Contact us today (or call 800-733-8613) with questions on the DOL Overtime Rule.