Now that the final Overtime Rule has been announced, it is vital to understand how it will effect employers and workers. Since 2014, the Secretary of Labor has been working to update the overtime regulations to reflect the original intent of the Fair Labor Standards Act. The end goal is to provide better pay to middle class workers and to allow them more free time- creating a culture of work/ life balance
According to the United States Department of Labor, the final rule will accomplish the following:
- Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
- Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
- Strengthen overtime protections for salaried workers already entitled to overtime.
- Provide greater clarity for workers and employers.
It is important to note that the final rule does not present changes to the duties test for executive, administrative and professional employees. The final rule goes into effect on December 1, 2016. Holbrook & Manter is here to help you and your business prepare for these changes. Please contact us today to get started.
For more information on the Overtime Rule, please visit the DOL website here: www.dol.gov/featured/overtime