2016 New Overtime Rules
Beginning December 1, 2016, the Department of Labor's new overtime rules take effect, and, taking current salaries into account, are estimated to impact upwards of 4 million white-collar workers nationwide, including approximately 133,000 in Ohio. The new rules make a few changes to the salary basis test for the "white collar exemptions" and are the first update to the Depression-era Fair Labor Standards Act. First, they extend time and a half pay to salaried workers working more than 40 hours a week and making less than $47,476 per year, or $913 per week, doubling the old threshold of $23,600 annually, or $455 per week. A second change implemented by the new rules is a requirement to update the salary threshold every three years based on wage growth over time. Third, the new rules increase the compensation requirement of employees who qualify as Highly Compensated from $100,000 to $134,000 annually. The new rules do not change the "duties test" under the old rules, which mandates that the employee's job duties primarily involve executive, administrative, professional, or outside sales as defined by DOL in order to qualify for the "white collar exemption".
To find out whether or not your business is affected by these new rules, please contact Chappano Wood at firstname.lastname@example.org or (614)-228-4422.
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Last updated 13-Oct-2016.