New Rule Expands Overtime Pay to More Workers May 19, 2016

By Jack E. Moran

The U.S. Department of Labor issued the final version of an overtime exemption rule yesterday, changing who is entitled to overtime pay.  Under current DOL regulations, most “white collar” employees – executives and supervisors, administrative employees, and professionals – need not be paid overtime if they perform certain “exempt” duties and earn a salary of $23,660 or more.  The DOL’s new proposed rule raises this minimum salary requirement to $47,476 per year, essentially doubling it.  Therefore, even if employees perform “exempt” duties, they will still be entitled to overtime if they make less than $47,476 annually.  The rule becomes effective December 1, 2016.

For more information, or to discuss what steps employers should take to ensure compliance with the new rule, please contact the attorneys in our Employment practice group.

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