A Department of Labor final rule announced on May 18, 2016 increases the minimum salary level for exempt employees from $23,660 to $47,476 with automatic updates to the salary threshold every three years. This change will go into effect Dec. 1, 2016.
What does this new rule mean for employers? Those with employees who currently qualify as exempt and are under the new $47,476 threshold will need to make changes, so they comply with the new rule by Dec. 1, 2016.
Options for compliance include increasing the salary level of employees to meet the new minimum or reclassifying the employee as nonexempt and begin paying overtime for hours worked over 40.
In preparing for the new overtime regulations, employers should:
- Review current exempt positions and salaries
- Ensure job duties meet the exempt requirements
- Analyze labor cost implications of making a change
- Review time keeping processes and policies
For more information on determining if an employee is exempt or nonexempt, see the July/August 2016 WDA Journal article, “Overtime pay for dental employees: Exempt versus nonexempt.”Additional information can also be found on the DOL website: https://www.dol.gov/whd/overtime/fs17a_overview.pdf or http://www.dol.gov/whd/overtime/final2016.
