It’s July and we finally have some hot weather.  Sounds like the perfect time to talk about overtime, right?  That’s what the Department of Labor wants us to do.

Earlier this month, the DOL issued their newly proposed regulations for exempt employees.  Because they set the end of the comment period for September 4th, we are all going to need to dust the sand off our laptops and read through their proposed regulations.  Or maybe we can save you a little time with this abbreviated version.  Here’s the scoop:

Currently the minimum salary test requirement for determining whether an employee is exempt from overtime is whether his/her salary is at least $23,660 a year for full time employment.  There are other criteria that determine whether an employee is exempt or non-exempt, but this is the traditional starting point.

The new proposal recommends increasing this to an amount based on the 40th percentile of full-time salaried workers.  Using the most recently available data from 2013, that amount would be $47,892 per year.  By 2016, that number is estimated to be $50,440 per year.

While the $23,660, which was set in 2004, is definitely outdated and needed to be addressed, setting the minimum amount at the 40% percentile will likely be challenging for many businesses, especially those in low margin industries.   If this includes your business, put down your drink and follow this link to log your comments with the Department of Labor:!documentDetail;D=WHD-2015-0001-0001

Logged your comments?  Good.  Now enjoy the beach, we’ve got your back covered like a big tube of 50 spf.  We will send you an update when the final determination is made as well as instructions on how to best comply with any changes.


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