Employment Alert - DOL Issues Final Overtime Rule


The Department of Labor has been working to modernize the overtime rules under the Fair Labor Standards Act which was last updated 12 years ago. On May 18, 2016, the Department of Labor (DOL) issued its final ruleadopting major changes to the salary basis test which determines whether an employee must be paid overtime or not.

The most significant change is a more than doubling of the minimum salary that employers must pay to most exempt employees from $23,660 per year to $47,467 per year to avoid overtime payments. The impact of the final rule will be to dramatically increase the number of employees who are now entitled to overtime pay.

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