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David Nagle and Crystal Tyler of Jackson Lewis P.C., one of the country’s preeminent workplace law firms, will be reviewing and answering questions about the Department of Labor’s New Overtime Compensation Rule.

 

Reserve Seat

*Free registration.

 

About the DOL’s New Overtime Comp Rule

In the spring of 2016, the Obama Administration DOL issued a new overtime rule. It was scheduled to go into effect late that year but was blocked by a federal court.  It would have more than doubled the compensation levels for “exempt” employee status, and it was estimated that 4 million additional workers would have become eligible for overtime compensation had it gone into effect.  Now, after further review, the DOL has issued new rules to establish those who are exempt from the overtime compensation requirements.  The increases are more modest, but in light of the rapidly-approaching January 1 effective date, they require prompt attention of all employers, who must analyze the status of personnel who have previously been treated as exempt, but whose salaries are below the new thresholds.

This rule addresses only the salary requirements–and not the duties–upon which employees are classified as exempt executives, administrative employees, or professionals.  If an individual’s salary compensation fails to meet the new thresholds, the individual will not qualify as exempt and must receive overtime compensation for hours above 40 in a workweek.

In short, the new salary requirements are as follows:

  • The new weekly salary required for executive, administrative and professional exemptions will increase from $455 to $684 (or from $23,660 to $35,568 on an annual basis).
  • The new annual minimum for exemption under the highly compensated employees will increase from $100,000 to $107,432.
  • Employers will be able to use nondiscretionary compensation, including commissions, to satisfy up to 10% of the new salary level requirements.

Amidst the busy year-end activities, employers will need to evaluate the impact of the new rule, on those who meet the current salary requirements, but not the new higher thresholds.  Employers can comply with the new rule by increasing salaries to meet the new requirements or limiting hours to avoid overtime work, or by reclassifying employees as non-exempt and paying overtime for hours above forty in a workweek.  This session will explore the new overtime rule, the obligations it imposes upon employers, and strategies for compliance.