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Update On New Overtime Rules

Volume 15, Issue 24
November 2, 2016

WagesAs you know, the changes to the federal overtime regulations governing certain executive, administrative, professional, outside sales, and computer employees become effective on December 1, 2016. These changes substantially increase the minimum salary necessary to qualify for the white-collar and highly compensated overtime exemptions (now, respectively, $913 per week/$47,476 per year and $134,004 per year).

As we previously mentioned, the U.S. House of Representatives passed a bill (H.R. 6094) in late September to delay the effective date of the Department of Labor's new rules by six months. The Senate has received this bill but no published action has yet been taken. On the judicial side, two lawsuits filed against the Department of Labor in a Texas federal court have been consolidated before one judge who, on November 16, 2016, will hear the plaintiffs' request for an order staying enforcement of the overtime rules. We will keep you posted on developments in these areas.

In the meantime, we continue to recommend that you prepare for compliance with the new rules by December 1, 2016.

Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.