The US Department of Labor issues new rules regarding Overtime Regulations for Executive, Administrative, & Professional Workers

Posted on: May 18, 2016

Yesterday, the US Department of Labor issued new rules regarding Overtime Regulations for Executive, Administrative, & Professional workers. The CEP has been tracking this issue very closely and had submitted commits to DOL regarding several sections of the proposed changes which we found particularly concerning.

While the DOL did not go as far as was initially proposed, the changes are significant:

• The salary threshold will be increased to $47,476 annually ($913/week)—an increase of slightly more than 100% from the current threshold of $23,660 annually ($455/week).

• There will be no changes to the duties test.

• The salary threshold will be updated every three years and tied to the 40th percentile of full-time salaried workers in the lowest wage region of the country (currently the Southeast).

• Employers will have until December 1, 2016 to come into compliance with the new requirement—a period of about 200 days.

We have been working for several months to finalize a training session for our partners on these new rules. We are tentatively scheduling multiple sessions the week of 20 June. Watch the website, our social media, and your email inbox for more information.

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