Overtime Changes to Take Effect Dec. 1, 2016

There was a final rule made A Department of Labor (DOL) final rule is set to increase the salary threshold for the “white collar overtime exemptions” to $47,476 per year. Recent challenges to the rule have left some questioning whether it will take effect on Dec. 1, 2016, as scheduled.

The U.S. House of Representatives passed H.R. 6094, which would delay implementation of the final rule. The bill would have to be passed by the Senate and approved by the president before it becomes law. President Barack Obama has threatened to veto the bill.

A coalition of 21 states and a number of business groups have filed lawsuits challenging the overtime rule. No court decision or order has been issued yet.

Unless the bill is passed into law or a court orders a delay, the DOL’s overtime rule will take effect on Dec. 1.

ACTION STEPS

Employers should be prepared to comply with the DOL’s new overtime final rule by Dec. 1, 2016. Actions needed for compliance may include raising salaries of currently exempt employees or paying overtime to employees who will no longer be exempt. Specific actions will depend on a number of factors related to each employer’s workforce.

Vanner Insurance Agency will continue to monitor these developments and provide updates as necessary.