Much has been written in the last six months or so about the proposed DOL Amendments. Those Amendments have been modified and now finalized, and they are likely to have a significant impact on a wide variety of American businesses.
What is important for you to know?
- These new regulations go into effect on December 1, 2016, but you and your clients need to prepare and potentially take action now.
- Any employee paid less than $47,476 on an annual basis must be classified as non-exempt and be paid overtime at the rate of 150% of their normal hourly rate. Conversely, any exempt employee currently making less than $47,476 must have their salary increased to this new level.
- The final rules also adjust this figure upward automatically every three (3) years, based upon Census data regarding employee salaries.
- It is also important that employees categorized as exempt are, in fact, properly exempt, not only under the salary level test above, but also under the salary basis and duties test.
These new rules could have a significant effect on your business in the coming years. Be sure to consult with your legal counsel for specific advice.