Tax Tip Tuesday: New Department of Labor Overtime Regulations
This week we are going to take a brief look at the new Department of Labor (DOL) overtime regulations that go into effect on December 1, 2016.
The DOL overtime rule determines which employees are exempt from overtime. Employers don’t have to pay overtime to exempt employees. Employers do have to pay overtime to employees who are not exempt.
To be exempt, an employee must receive a salary and have executive, administrative, or professional duties. Those two qualifications do not change with the new overtime rule.
But here is where things will change. While the worker still must be paid more than the salary threshold, that threshold is set to increase. The new salary rule raises the threshold to $913 per week, or $47,476 per year. Before the rule changed, the salary threshold was $455 per week, or $23,660 per year. The salary threshold is set by the DOL in the overtime rules.
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