The Fair Labor Standards Act (FLSA),also known as the federal Wage and Hour Law, requires enterprises engaged in interstate or foreign commerce and state and local governments to pay overtime of 11/2 times an employee's regular rate of pay for hours worked in excess of 40 hours in a workweek. The FLSA does not require that overtime be paid for hours worked in excess of 8 hours per day or on weekends or holidays. However, states are permitted to provide workers greater overtime protections than those offered by FLSA.
The federal Department of Labor (DOL) has released final changes to the overtime regulations. With this final rule, the DOL seeks to update the salary level required for exemption to ensure that FLSA’s intended overtime protections are fully implemented and to simplify the identification of nonexempt employees, thus making the executive, administrative, and professional employee exemption easier for employers and workers to understand and apply. These changes are effective December 1, 2016.
Salary level. The most prominent change is the increase in the salary level required for exemption from overtime to an annual salary of $47,476. This translates to a weekly salary of $913. This means that your employees who currently earn more than $455 per week ($23,660 annually) but less than $913 per week must be reclassified as nonexempt by December 1, 2016, and will be entitled to overtime for any hours worked over 40 in a week. The DOL is increasing the salary level for employees in American Samoa to $767 per week. In addition, the base rate for employees in the motion picture industry will increase to $1,397 per week.
Automatic adjustments every 3 ...