The Department of Labor has released the Final Rule regarding the minimum salary threshold for overtime exemption status! The Rule, which will go into effect on December 1st, 2016, is focused on updating the compensation levels needed to qualify for exemption status for Executive, Administrative, and Professional workers.
- The final minimum salary threshold for an employee to qualify for exempt status is now $913 per week/$47,476 annually, lower than the originally projected $50,440.
- In addition, the rule adjusts the compensation level for highly compensated employees (HCEs) subject to a minimal duties test to $134,004, as well as establishes a timeline of every three years for automatic updates to the compensation levels.
If these new guidelines make you feel like you need some guidance, reach out to HRG!