News & Insights

"Ready for New Overtime Regulations?" by Katherine Cser

November 2016

With the new changes to the Fair Labor Standards Act regulations, approximately 4.2 million workers who are not currently eligible for overtime benefits will become eligible on December 1, 2016.  Employers will now have to pay overtime to workers who earn less than $47,476 a year (or $913 a week), including those considered “managers” or “professionals”, as well as highly compensated workers. Employers will be able to use nondiscretionary bonuses and other incentive payments to satisfy some of the salary requirements.

The Department of Labor will increase the salary threshold every three years, beginning on January 1, 2020. 

In anticipation of these changes, employers should review their employee classifications to determine whether they are in compliance with the new regulations, and consult with an employment lawyer should they have any questions.

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