Overtime Rules are Changing

The United States Department of Labor has indicated that new overtime rules will take effect in late 2016.  Under these new rules, the overtime exemption for salary will rise significantly from $23,660 potentially as high as $50,440.


What that means is that whereas today an employee making an annual salary of $47,000 could work any number of hours per week without receiving overtime pay, employers may have to keep track of hours that same employee works and compensate them time-and-a-half for all hours over the overtime threshold (most of the time, more than 40 in a workweek).

In addition, this new higher salary threshold will increase automatically to keep pace with inflation.

The Department of Labor has received over a quarter of a million comments on the proposed rule and has suggested that the final rule will not be issued until late 2016.  If that is they case, they likely will not take effect until sometime in 2017.

Since the Department of Labor is in the executive branch of government, and its agenda is largely driven by the sitting president, this all leaves one to wonder what impact the upcoming presidential election may have on the proposed new overtime rules.

Check back regularly for updates on this proposed rule.