United States Department of Labor Expands Overtime

​The United States Department of Labor has announced significant changes to the Fair Labor Standards Act (FLSA), increasing the eligibility for overtime. Effective December 1, 2016, the salary levels for the executive, administrative, and professional exemptions will increase to $47,476.00 annually ($913 per week). This represents the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South. The total annual compensation required for highly compensated employees subject to a minimal duties test will increase to the annual equivalent of the 90th percentile of full-time salaried workers nationally, which is $134,004. Every three years the salary levels will be updated to ensure it maintains a threshold equal to the salary levels at these percentiles. There were no changes to the duties tests in the Final Regulations.
 
The Division of Personnel will be updating its FLSA guidance throughout this year as more information becomes available. Visit the following websites for additonal information:

U.S. Department of Labor Fact Sheet on the Final Rule

U.S. Department of Labor Final Rule FAQ

U.S. Department of Labor Overtime Final Rule and State and Local Governments