On May 18th, the U.S. Department of Labor (DOL) issued the ﬁnal version of a much‐anticipated rule to expand overtime eligibility. This new rule will take eﬀect December 1, 2016 and, based on DOL estimates, will expand overtime eligibility to more than 4.2 million additional workers. The new rule focuses primarily on updating the salary and compensation levels needed for executive, administrative, and professional workers to be exempt. In particular, the ﬁnal rule: (1) increases the salary threshold for the standard White Collar Exemptions (from $23,660 to $47,476), and the Highly Compensated Employee Exemption (HCE) (from $100,000 to $134,004); and (2) establishes a process for updating the thresholds automatically every three years, beginning on January 1, 2020. Employers may include non‐discretionary bonuses, incentive pay, and commissions in calculating whether an employee meets the salary threshold‐up to ten percent of the threshold ($4,747). The incentive must be paid on a quarterly or more frequent basis to be used for this purpose.
PHOTO: Ryan Glasgow ‐ Labor & Employment Partner ‐ Hunton & Williams, LLP
Guest speaker was labor lawyer Ryan Glasgow with the Hunton Williams law ﬁrm who presented a thorough explanation of the new rule, and answered many questions from the membership as to its applicaon. Copies of his handout from that meeng are available by contacting the RAMCA oﬃce.