New Overtime Rules – 2016
May 18, 2016 final overtime rule released by DOL. Employers have until Dec. 1, 2016 to determine which employees need to be reclassified as nonexempt and make the appropriate changes.
The new rules increases the number of employees that will be entitled to OT pay. It sets the salary test for OT exemption from $23,660 to $47,476 ($455 to $913 per week). This could impact seasonal businesses, and will impact smaller companies who can’t increase salaries. Other negative effects include reduced hours, benefits cut, and limit flexible office arrangements