May 18, 2016
The Department of Labor (DOL) released its final regulations making changes to overtime exemptions under the Fair Labor Standards Act (FLSA), which go into effect December 1, 2016. In short, these changes include an increase in the annual salary threshold to $47,476 (this doubles the current salary threshold level, making some employees that are currently classified as exempt now eligible for overtime pay) and also includes automatic salary threshold increases every 3 years.
Employers should begin the process of reviewing their current workforce immediately to determine which employees are affected by the new overtime standards, whether to re-classify those employees, and determine a communications strategy for their workforce.
If you need assistance in analyzing your workforce, understanding how these changes may impact your business, or guidance in determining what you need to do next, please email us
or give us a call at 703-587-5615. We are here to help you and your organization prepare for this change!