In case you missed the headlines, the U.S. Department of Labor has announced the final version of its long-anticipated revisions to the regulations governing employees who are exempt from overtime pay.

 

Starting December 1, 2016, any salaried employee earning less than $47,476 per year (approximately $913 per week) will automatically qualify for overtime pay when they work more than 40 hours per week. While this new salary level is lower than expected (many analysts predicted the annual amount would be $50,440), it is still far higher than the $23,660 ($455 per week) threshold currently in place.

 

Employees will still have to meet the "duties test" to ensure they are only performing management, clerical or office functions. Otherwise they will automatically be eligible for overtime pay.

 

It is estimated that more than 4 million employees nationwide will become eligible for overtime when the new rules take effect. Some employers are expected to make adjustments to balance out the potential increase in payroll brought about by the new rules by shifting salaried employees to hourly compensation and limiting their hours.

 

For more information on the new overtime regulations, please contact Gray, Gray & Gray at (781) 407-0300.