In May 2016, the Department of Labor (“DOL”) issued its revised overtime rule, which increased the overtime salary limit from $23,660 to $47,476. The final rule can be found here. The rule is specific to employees who are considered exempt under the executive, administrative and professional exemptions. The new rule will become effective December 1, 2016.
For most businesses, this will potentially affect your administrative employees such as receptionists or office managers. If you currently have salaried employees who make less than $47,476, we recommend you review their job description to determine whether they are still considered exempt under the new DOL rule. Up to 10% of the base salary can be met through payment of nondiscretionary bonuses or commissions if they are paid at least quarterly.
If you need assistance determining whether your salaried employees remain exempt under the new DOL rule, please contact the attorneys at Holmquist & Gardiner to discuss your specific situation.
This article is intended to inform the reader of general legal principles applicable to the subject area. It is not intended to provide legal advice regarding specific problems or circumstances readers should consult with competent counsel with regard to specific situations.