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New Overtime Rule for Salaried Employees

By May 24, 2016 August 5th, 2020 No Comments

On Wednesday, May 18, The U.S. Department of Labor announced the Final Rule updating the exemption of executive, administrative, and professional employees from the minimum wage and overtime pay protections of the Fair Labor Standards Act (FLSA). This update will affect 4 million workers in its first year of implementation.

Here’s what you need to know:

Starting December 1, 2016, any salaried employee earning less than $47,476 per year (approximately $913 per week) will qualify for overtime pay when they work over 40 hours per week. The current threshold is $23,660 annually ($455 per week).

To qualify, an employee must also pass the “job duties” test, which includes those performing executive, professional, and administrative responsibilities.

For more information on the new overtime regulations, please visit the U.S. Department of Labor website or Brian McFarren at (231) 726- 5815 or

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