Media Coverage
Source: Associations Now
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
05.26.16
On May 18, President Obama released his final draft of the overtime rule. The rule calls for a roughly 100-percent increase in the minimum salary for exempt employees, effective December 1, 2016.
That means all salaried employees guaranteed to make less than $47,476 annually, up from $23,600, will qualify for nonexempt status and be eligible for overtime pay. By January 2020, that $47,476 base salary will rise every three years.
“Employers should get into the information-gathering mode,” said Employment special counsel Julia Judish. “The first and most critical thing that any employer needs to do is look at its currently exempt employees who are paid on a salaried basis and identify which of these employees aren’t guaranteed a salary—with the new regulations including at least quarterly nondiscretionary bonuses…above that line,” she said. “Those are the employees who are affected.”
Judish recommends companies take a look at their exempt employees’ overtime pay now. By finding ways to reduce those hours, employers will save money when the rule takes effect.
Read more about the overtime rule on: Associations Now