Yesterday, the Department of Labor released the final regulations regarding the white collar exemptions for overtime compensation. We will discuss this more here and in our newsletter, but here is a quick run down of what employers need to know:
- The salary threshold for the white collar exemptions (administrative, executive, professional, creative) is now $913 per week (which equates to $47,476 per year)
- There will be automatic salary threshold increases every 3 years to maintain the salary level at the 40th percentile in the lowest-wage census region
- The highly compensated employee exemption salary threshold is changed to $134,004 per year
- There is no change to the duties test
- These regulations will be effective and employers must be in compliance as of December 1, 2016
As we said, we will post more things about this and in more detail but for now, we wanted to get you this late-breaking news so your companies could begin the process of getting in compliance by December 1, 2016.