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Overtime Archives

Employers and Employees Should Be Aware of the New Overtime Rules Issued by the US Department of Labor.

On May 18, 2016, the U.S. Department of Labor the final rule updating regulations that govern the payment of overtime wages under the Fair Labor Standards Act. The new rule, which goes into effect on December 1, 2016, significantly raises the amount of minimum salary that employees must be paid to qualify for the Executive, Administrative and Professional exemptions from overtime pay. As a result, the number of employees eligible for overtime pay will increase significantly. According to a press release issued by the White House, it expects the change to extend overtime protection to 4.2 million Americans who are not currently eligible for overtime wages under federal law. Many salaried employees may find that they will be entitled to overtime pay when the new rule goes into effect. Employers may have to adjust salaries or work schedules.