18 May Department of Labor Announces Final Ruling on Salary Threshhold
For months now, business owners have been monitoring and watching for the U.S. Dept. of Labor to announce its final decision on the minimum salary threshold to be paid to employees in order to qualify as exempt from overtime under the Fair Labor and Standards Act (FLSA). Today the decision was announced.
The new rule raises the current salary level for exempt employees from $23,660 annually to $47, 476 and goes into effect December 1, 2016.
Additionally, under the new salary rules, the level for “highly compensated” employees will rise from $1000,00 per year to $134,004 per year.
Many employers will be impacted by the new rule and will be reviewing their workforce carefully to determine what changes will be necessary in order to stay in compliance.