On December 1, 2016, new regulations from the Department of Labor are scheduled to double the salary threshold for overtime exemptions. The jump in the salary basis threshold will sharply increase the number of employees who are entitled to overtime pay for hours worked over 40 in a work week.
Currently, employees who are paid a salary of at least $455 per week ($23,660 per year) and who meet certain other factors, such as management duties, supervision of other employees, or exercising independent judgment and discretion in their duties, may be exempt from overtime pay under the executive, administrative, professional, or computer professional exemptions. Beginning December 1, 2016, employees will have to earn a salary of at least $913 per week ($47,476), as well as meeting other factors, to be exempt from the overtime pay requirement.
Employees who are most likely to be newly eligible for overtime pay are those in skilled, managerial, and supervisory positions, including assistant managers, managers, first line supervisors, store managers, restaurant managers, and office workers. Entry level positions in a skilled or degree-requiring profession may also be newly eligible, if they pay under $47,476.
If you have questions about whether your job is eligible for overtime pay, or if you are an employer with questions about which positions are overtime eligible under the new regulations, please call the lawyers at Shellist Lazarz Slobin LLP.