The U.S. Department of Labor (DOL) recently published monumental changes to the overtime regulations of the Fair Labor Standards Act (FLSA). These changes will make approximately 4.2 million currently exempt employees eligible for overtime pay later this year, and will potentially affect many Chamber/Bureau member businesses.
What Is The New FLSA Overtime Rule?
- The rule extends overtime protections to 4.2 million workers who are not currently eligible under federal law.
- Workers who earn as much as $47,476 a year ($913 a week) will have to be paid overtime, even if they're classified as a manager or professional.
- The Department of Labor will increase the salary threshold every three years. Based on current projections, the salary threshold is expected to rise to more than $51,000 with its first update on January 1, 2020.
- Employers must comply with the new regulations by December 1, 2016.
Here are links to additional information about these regulations:
The Society of Human Resource Management, https://www.shrm.org/legalissues/federalresources/pages/final-overtime-rule-issued.aspx.
U. S. Department of Labor, https://www.dol.gov/whd/overtime/nprm2015/factsheet.htm.
U. S. Chamber of Commerce, https://www.uschamber.com/article/dol-finalizes-overtime-regulation.
The Park City Chamber/Bureau strongly encourages all members to be familiar with these new regulations, and voice concerns they may have to their elected officials, particularly at the federal level.