Starting December 1, 2016, the minimum salary requirement for overtime-exempt employees under the Fair Labor Standards Act increases from $23,660 annually ($455/week) to $47,476 ($913/week). If the new requirement is not met, then the employee will longer be considered exempt from overtime. To comply, employers should review each of their overtime-exempt designated employees to determine: (1) if the employee meets the applicable primary duties test to qualify as exempt; and (2) whether the salary needs to be increased. In some instances, it may make financial sense to switch to paying an employee overtime instead of increasing their salary. I am ready to assist you if needed.
For more information, read the article published in our August 2016 Employment and Business Law Newsletter.