Final Ruling on Department of Labor’s OT Regulations

On May 18th, the Department of Labor released its highly anticipated final rule on the FLSA exemption for executive, administrative and professional employees. Details of the ruling are listed below:

  • The standard salary threshold is $913 per week or $47,476 annually for a full-year worker
  • Changes are effective on December 1, 2016 and future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020
  • For the first time, employers will be able to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the standard salary threshold

Looking for more guidance? Refer to the Department of Labor’s guidance on the final rule webpage, which includes a summary of the final rule, a fact sheet, a Q & A document, a comparison between the current, proposed and final rules, guidance for private employers and guidance for higher education.

Contact us if we can be of any assistance on this ruling!