Yesterday, the United States Department of Labor released its highly-anticipated (and much-debated) final rule regarding overtime compensation. Here is a link to the Department of Labor’s Fact Sheet on the new rule: DOL Fact Sheet on New Overtime Rule
Prior to release of the rule, every prognosticator was trying to predict the new threshold salary for exempt employees. Currently, that salary is $23,660. Under the new rule, the threshold salary is $47,476. That is a massive increase for employers.
The new rule becomes effective on December 1, 2016. On that date, employees with an annual salary of $47,476 or less must be paid overtime. I previously advised that employers should begin planning for the new rule here: What Would Saban Do? Preparation for DOL’s New Overtime Rules If you have not done so, it’s time to conduct a wage audit of your employees and make difficult decisions regarding salaries.