In our May 9, 2016 blog post we discussed the pendency of expected Department of Labor (DOL) regulations updating the Fair Labor Standards Act (FLSA), including overtime rules. This blog post updates our earlier post as yesterday, May 17, 2016, DOL announced its final rule.

The rule's effective date is December 1, 2016. Some highlights of the final rule that vary from the earlier notice expectations as provided by Vandeventer Black Labor Attorney Anne Bibeau are:

  1. The new salary threshold is $913/week or $47,476/year.
  2. The highly compensated employees total annual compensation exemption was raised to $134,000.
  3. Those amounts will automatically increase every three (3) years beginning January 1, 2020.
  4. The salary basis test has been amended to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the new salary threshold.
  5. There were no changes to the duties test.