Earlier this year, The Department of Labor announced a Final Rule on overtime pay. Hopefully, you've had time to prepare for implementation, which occurs December 1, 2016.
Here are some key provisions of the Final Rule:
- All workers earning up to $913 per week, or $47,476 annually for a full-year worker, must be paid at the overtime rate for any time worked beyond 40 hours per week.
- Overtime pay rate is time and one-half the regular hourly rate.
- The threshold for highly compensated employees has gone up, from $100,000 to $134,004.
- Automatic updates to these thresholds will be made every three years, beginning January 1, 2020.
Employers have three choices for overtime work: they have the option to limit workers' hours to 40 per week, pay them time and one-half their regular hourly rate for all hours worked over that limit, or to hire part-time workers to keep full-time employees from working overtime.
For more information, see the Department of Labor's Overview and Summary of Final Rule.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
