On May 18th, 2016 the DOL released a final rule that radically increases the thresholds for overtime rules, expanding the number of employees eligible for overtime pay. Under the FLSA, employees who work more than 40 hours in a week are entitled to overtime pay, unless they meet the requirements of certain wage and duties tests. The new rule doubles the minimum salary threshold from $455 per week to $913 per week (which amounts to $23,660 annually to $46,476 annually) and raises the exemption level for those considered to be "highly compensated employees" from $100,000 to $134,004 annual salary.
We understand that the DOL rule may impact major business decisions like hiring, expansion, offering new benefits or more flexible work arrangements for employees, and possibly even require reductions at your company. We can help you in assessing the effects of the new overtime-pay rule. Companies will have until December 1, 2016, to make determinations on which employees to reclassify as nonexempt and implement the changes. We have the expertise to guide you through this change and help you plan for the future.
Let us know if you have any questions.
Jeremiah K. Murphy, CPA is an accounting firm providing tax services, audits and business consulting.