Labor Dept Publishes New Overtime and Exempt Status Rules

The U.S. Department of Labor has finalized sweeping changes to the Fair Labor Standards Act (FLSA) overtime rules, extending protections to millions U.S. workers.

The rule has the potential to impact the exempt status of a wide variety of positions in virtually every industry. The rule, proposed by the DOL last year, focuses primarily on updating the salary and compensation levels needed for workers to be exempt.

The changes double the salary threshold for “white collar” exemptions from the current minimum of $455 per week, or $23,660 a year, to $913 per week, or $47,476 annually. Under the new rules, the salary threshold will automatically update every three years, based on wage growth over time. The final rules will become effective on December 1, 2016.