U.S. Department of Labor FLSA Overtime Rule Update

The U.S. Department of Labor has issued finalized regulation changes to the Fair Labor Standards Act (FLSA) that raises the compensation threshold for the Overtime Exemption, from $23,660/year to $47,476/year. This change may affect some of your salaried employees who are currently classified as “Exempt” from overtime pay. This rule goes into effect December 1, 2016.

You may read more about the Final Rule on Overtime Exemption here: https://www.dol.gov/whd/overtime/final2016/

Every organization is different, so the action your organization decides to take in order to comply with the new rule (if impacted) will depend on it's workforce structure, current wages for salaried employees, policies, budget considerations, etc. It is up to each organization's management to decide what changes will be implemented.

If your organization chooses to re-classify some employees from salaried compensation to a traditional, hourly compensation, it is important to understand that timing is critical in making such a change in our system.

If you have any questions or are unsure on how to properly make changes to employees in our system, please contact your assigned customer service representative.