Print Page   |   Contact Us   |   Your Cart   |   Sign In   |   Join LANO!
Search LANO.org
2016 Department of Labor Overtime Ruling
Share |

 

Fifth Circuit Grants DOL’S Request for Expedited Briefing of Preliminary Injunction Ruling (December 8, 2016)

 

Breaking News (November 23, 2016) - Texas Federal District Judge Blocks Obama Overtime Rule

 

 

The Rule

 

On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. This long-awaited update will result in a meaningful boost to many workers’ wallets, and will go a long way toward realizing President Obama’s commitment to ensuring every worker is compensated fairly for their hard work.

 

 

Key Provisions of the Final Rule

The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:

  1. Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
  2. Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
  3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.

Additionally, the Final Rule amends the salary basis test to allow employers to use non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.


 

Additional Resources: 

Overtime Final Rule and the Non-Profit Sector- Article

Nonprofits Full Costs Realized: How 2 Nonprofits Transformed their Budgets- Webinar

 

 

 

Click Here for the Department of Labor's Website


more Calendar

3/3/2017
Darkness to Light

3/7/2017 » 3/9/2017
RES/CON New Orleans

Association Management Software Powered by YourMembership  ::  Legal