DOL's Final Overtime Rule - Is Your Company Ready? Only 44 Days Left to Comply

  • Posted by: J. Kent Gervasini |
  • 10/17/16 |
  • 10:05 AM
  • 1995 Views
DOL's Final Overtime Rule - Is Your Company Ready? Only 44 Days Left to Comply

Time is running out to define and delimit the exemptions for executive, administrative, professional and outside sales and computer employees that are affected under the Fair Labor Standards Act (FLSA).The U.S. Department of Labor's final rule to boost the minimum salary for white collar exemptions goes into effect on Dec. 1.

New Salary Thresholds - Effective 12/01/2016
The time is now.  Companies must decide how to handle the otherwise exempt employees whose current salaries will not meet the parameters of the new rule by either raising their salaries or converting them to nonexempt status. The new salary threshold for the executive, administrative, and professional exemption will increase from $23,660 annually to $47,476. The total annual compensation requirement for "highly compensated employees" subject to a minimal duties test will be raised from $100,000 to $134,004.

Awareness Needed - Lots of Issues to Resolve
Employers should keep in mind that salary adjustments could have an adverse effect on individuals in protected categories. For example, if a company raises the salary of a lower-level male manager to meet the new threshold, a female senior manager who is now being paid only a little bit more than the lower-level male manager could raise a concern about gender discrimination if her salary is not also adjusted. This is just one example of the issues that could arise. For more information read...

Source:  Stephen C. Dwyer, General Counsel, American Staffing Association, United States Department of Labor, Wage and Hour Division

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The information above does not constitute legal advice.  Employers and staffing agencies should consult a Colorado labor or employment attorney with additional questions, or for guidance and more information.
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