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BREAKING NEWS: Department of Labor Overtime Regulations Out

Guest Post By:  Suzanne M. Boy, Esquire, Employment Law Attorney at Henderson Franklin Starnes & Holt

The moment we have all been waiting for (dreading?) has arrived — the Department of Labor issued its “Overtime” Final Rule.  The details are available on the DOL’s website, with the “official” Final Rule to be published in the Federal Regulations.

As anyone who follows HR or employment law knows, this Final Rule has been highly anticipated — not to mention hotly debated — due to what is essentially a complete overhaul of the salary basis portion of executive, administrative, and professional overtime exemptions.  We now know:

  • The new minimum salary basis is $913/week or $47,476/annually.
  • The highly compensated employee salary basis jumps to $134,004/annually.
  • The salary basis will be “automatically” updated every three years, beginning January 1, 2020.
  • Employers may now use nondiscretionary bonuses and incentive payments, including commissions, to satisfy up to 10 percent of the salary basis.
  • Perhaps most importantly, the effective date of the Final Rule is December 1, 2016.

To me, what stands out the most is the effective date — it gives employers much more time to adopt the new regulations than most people anticipated (some suspected it would be as few as 30 days).  So, that’s good news for the thousands of employers who will be impacted by these changes. Also notable? The DOL did not make any changes to the duties test for any of the exemptions.

Once we have a chance to fully digest the Final Rule, we will be back with additional updates.   In the meantime, check out the DOL’s Questions and Answers section and Fact Sheet for additional information.  You can also comment on this post or email me directly if you have questions. Stay tuned!

About the Author

Boy low resSuzanne Boy is an employment lawyer at Henderson Franklin in Fort Myers, Florida. She is passionate about assisting her business clients with all aspects of employment law and HR-related issues. Suzanne regularly assists her clients with employee handbooks; wage/hour audits; supervisory training; and employee termination, leave, and disciplinary issues, and she strives to help clients proactively and cost-effectively resolve workplace issues. When litigation cannot be avoided, Suzanne represents her clients in employment litigation, including Title VII, ADEA, ADA, FLSA, FMLA, whistleblower statutes, and all types of retaliation. She frequently speaks to businesses and professional groups on various employment matters, and serves as the lead writer of Henderson Franklin’s Southwest Florida Employment Law Blog.

Suzanne has been recognized for her professional achievements and for her community involvement. In 2014, she was named one of Gulfshore Business Magazine’s Forty Under 40.  Suzanne has also been named to the Business Observer’s 40 Under 40.  For six consecutive years, she has been recognized by Florida Super Lawyers magazine as a “Rising Star.”  Suzanne is very involved in the community, and currently serves on several boards and committees, including SHRM SWFL, Canterbury School, Florida Bar Grievance Committee, Women in Business, and Leadership NEXT. She can be reached at suzanne.boy@henlaw.com or by phone at 239.344.1403.

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