Overtime Rules

In May 2016, the Department of Labor finalized new rules governing which employees are eligible for overtime pay.   The new rules double the minimum salary threshold that employees must earn in order to be exempt from overtime pay, increasing the figure to $47,476/year ($913/week), up from the previous salary of $23,660 ($455/week).  This number will be automatically updated every three years based on wage inflation.  The new rules do not change the so-called “duties test” applicable to employees who earn more than this salary threshold.  Immediately before the new salary threshold was to take effect on Dec. 1, 2016, the rule was judicially stayed nationwide. Litigation surrounding the rule continues.

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