In May, the U.S. Department of Labor announced its much-anticipated final overtime regulation. The final rule updated the salary level required for exemption of executive, administrative and professional employees from the minimum wage and overtime pay protections of the Fair Labors Standards Act.
Since 1940, the Department's regulations have required three tests be met for the exemption to apply: (1) The employee must be paid a predetermined and fixed salary; (2) the amount of salary must meet a minimum specified amount; and (3) the employee's job duties must meet the "duties test".
This newly released rulemaking will have significant impacts to employers.
Key Provisions of the Final Rule
- The salary threshold will be increased to $47,476 annually ($913/week) - an increase of slightly more than 100% from the current threshold of $23,660 annually ($455/week).
- The salary threshold will be updated every three years and tied to the 40th percentile of full-time salaried workers in the lowest region of the country (currently the Southeast).
- Employers will have until December 1, 2016 to come into compliance with the new requirements - a period of about 200 days.
Overtime Regulations Workshop
Wednesday, August 24 from 8:30 to 10:30 a.m. at Southern Market Center
This workshop will include an overview of the changes to the regulation and employer options for response. You will then break out into industry sector specific sessions (retail, hospitality, construction, healthcare, non-profit, professional services) to have a facilitated dialogue with our presenters around potential strategies, implications in their sector, communicating any changes to employees, etc .You will not only walk away with a potential strategy, but also create a peer network from your sector that can be useful moving forward. Please note that we will be soliciting feedback from registrants prior to the session on what they would like covered.
This program is held in partnership with the Non-Profit Resource Network, BIA, ABC, Discover Lancaster, Economic Development Company of Lancaster County and Leadership Lancaster. There is no cost to attend. To register, Click Here or call Sarah Maser at 717.397.3531.
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