Effective December 1, 2016, new overtime rules will go into effect. The rule will entitle most salaried white collar workers earning less than $913 a week ($47,476 a year) to overtime pay. This threshold amount will be automatically updated every three years.
By increasing the number of workers who are eligible for overtime when they work more than 40 hours in a week, employers will have a choice. They can either:
- increase their employees’ salaries to at least the new salary threshold,
- pay workers the overtime premium for extra hours, or
- limit their work to 40 hours in a week.
If an employee reports to the Department of Labor (DOL) that these new regulations are not being followed, upon investigation by the DOL, the employer may be liable for all unpaid overtime wages plus penalties.
Please contact our office with any questions or concerns you may have regarding these new regulations.