Posted September 20, 2016
New Overtime Rules: What You Need to Know
Starting December 1st, 2016, the FLSA (Fair Labor Standards Act) will take effect. This law increases the requirement for employers to pay overtime to salaried employees who make less than $47,476/year.
What is overtime?
Overtime is pay of time and a half to any eligible employee who works more than 40 hours in any work week.
Who is an eligible employee?
An eligible employee is any salaried employee making less than $47,476 and does not qualify for an exemption (This is increasing from $23,660/year)
Who must comply?
Any business considered an enterprise with gross revenue of $500,000 or more is required to follow the FLSA. Hospitals, businesses providing medical or nursing care, schools, and public agencies must comply even if they do not have revenues of $500,000. There are also certain other exemptions that apply for for bona fide executive, administrative, professional, and outside sales employees. To read more about these exemptions, you can read this DOL fact sheet: https://www.dol.gov/whd/overtime/fs17a_overview.pdf
When does this take effect?
The FLSA takes effect on December 1, 2016.
If you think the FLSA is going to affect you or your business or have additional questions, BNA is here to help: Reach out today!