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FLSA Final Rule on Overtime and Exempt Employees

The Department of Labor finalized the Final Rule regarding increases to salary for exempt employees (those who do not have to be paid overtime). The FLSA Final Rule on Overtime and Exempt status will become effective on December 1, 2016.

Highlights of the new FLSA Final Rule on Overtime and Exempt status:

  • The weekly requirement for a salaried individual, to remain exempt, will increase to $913 per week; $47,476 annually for a full-year worker.
  • Individuals who are exempt because of highly compensated employee status will now need to receive a salary of $134,004 annually.
  • The salary requirement will be updated every three years.
  • The Final Rule will allow employers to use non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new requirements.

What you need to do now:

  • As of now, no salaries, exemption levels or policies need to be changed prior to December 1, 2016
  • Employees who are currently salary-exempt need to be evaluated; those who may be affected by the FLSA Rule, particularly those who earn $913 per week or less need to be identified
  • Determine if those employees identified as falling below the threshold who will receive a salary increase, become  hourly employees who are paid overtime or a hybrid- where employees are paid a salary and overtime hours.

Employers and businesses in the Pittsburgh area can contact Kisner Law Firm for assistance with exempt-salary employees impacted by the new FLSA overtime Rule. We can assist with identifying employees, developing new compensation strategies, answering questions and updating handbooks and other policies prior to the December 1, 2016 effective date.

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707 Grant St., Suite 2646
Pittsburgh, PA 15219
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Phone: 412-208-4263
Fax: 412-235-6704

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