On May 18, 2016, President Obama announced the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime protections to over 4 million workers considered “white collar.” This new rule will become effective December 1, 2016.

The overtime rule changes employees classified as “white collar” to require wages of $913 per week, or $47,476 annually. The new rule does contain various exemptions to this rule that may allow certain employees for a reduced salary if all requirements are met by their job requirements. The requirements are for executive, administrative, learned professional, computer, and outside sales positions. We recommend you contact us to discuss if you believe there is an employee that meets these requirements.

To help in making changes to your employees pay status, we request you contact us to update the employee records to become compliant for this new rule.