By Janis Reyes, Assistant Chief Counsel
Is your small business ready for the Department of Labor’s new overtime regulations that are effective on December 1, 2016?
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A new compliance webinar is available for small businesses, which was presented by the Department of Labor in partnership with the Small Business Office of Advocacy. The recording of the webinar is now available at: https://www.dol.gov/WHD/overtime/final2016/webinars.htm or on YouTube: https://www.youtube.com/watch?v=Dn0Eo09nA0M.
During the webinar, DOL provided a briefing and a questions and answers session regarding the agency’s final rule that makes changes to the Fair Labor Standards Act (FLSA) overtime regulations. Chief Counsel Darryl L. DePriest discussed Advocacy’s involvement in this rulemaking, such as completing five roundtables across the country and submitting a public comment letter based on this feedback. Now that this rule is final, Advocacy is working with DOL to complete outreach and educate small entities across the country so that they can be compliant with these requirements.
Under the Fair Labor Standards Act (FLSA), employees are entitled to overtime pay if they work over 40 hours a week. However, there are many exemptions under the FLSA. The final rule amends the FLSA “white collar” exemption from overtime pay for executive, administrative or professional employees. Specifically, the final rule:
- Updates the minimum salary threshold that determines which employees are subject to the exemption, increasing this threshold from $23,660 to $47,476. All employees, including managers, making under $47,476 will be eligible for pay on December 1, 2016.
- Amends the salary basis test to allow employers to use non discretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.
- Additionally, DOL will be making automatic updates to this minimum salary threshold every 3 years beginning on January 1, 2020.
DOL has created other resources to help small entities comply with this rule, such as a Small Business Compliance Guide, which can be found at: https://www.dol.gov/WHD/overtime/final2016/. DOL also has a hotline for compliance questions at: 1-866-4-USWAGE (1-866-487-9243). ?