Facts & Fiction of the new FLSA Final Rule as DOL Releases Final Regulations of New Overtime Rule
“Millions to Earn More in Overtime!” That is what one newspaper headline read on the front page.
The Department of Labor has finally released the final regulations regarding the new wage standard for exempt-level employees under the Fair Labor Standards Act (FLSA). There was both good news and bad news in the notice published by the Department of Labor. Plan early to comply as the final rule will become effective Dec. 1, 2016.
This new law might have some larger effects on the way businesses handle salaried employees. What this new law essentially means is that employees earning up to $47,476 per year, will be eligible for overtime if they work over 40 hours. Some operational processes being considered for this employee category varies anywhere from:
- Using time cards for recording hours
- Giving compensation time over 40 hours
- Increasing annual salaries to adjust for bonus and profit sharing programs
In an in-depth article written by Mike Haberman for The Protocall Group’s Labor and Industrial Insights newsletter, relevant provisions of the current, proposed and final rule is available.