On May 18, 2016 the U.S. Department of Labor (DOL) announced a final rule regarding overtime wage payment qualifications for the “white collar exemptions” under the Fair Labor Standards Act (FLSA).

The final rule increases the salary an employee must be paid in order to qualify for a white collar exemption. The required salary level is increased to $47,476 per year and will be automatically updated every three years. The final rule does not modify the duties test employees must meet to qualify for a white collar exemption.

Employers will need to comply with this rule by Dec. 1, 2016, and should reclassify employees as exempt or non-exempt, as necessary, by that date. Employers should also consider communicating any work schedule changes to affected employees, and evaluate whether implementing new timekeeping practices and training for managers and supervisors on the new requirements is necessary.

Please refer to the below bulletin for additional information regarding this updated legislation, and contact your NEEBCo representative with any questions you may have.

DOL Issues New Overtime Payment Rules