Final DOL Regulations Issued

In the December 2015 issue of Insights, I wrote about the Proposed DOL Amendments. Those Amendments have been modified and now finalized.

What is important for you to know?

• These new regulations go into effect on December 1, 2016 but you and your clients need to be prepared and take potential 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.  OR 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 as to employee salaries.
• It is also important that employers categorize employees as exempt, are properly exempt – not only under the salary level test above, but also under the salary basis and duties test.
• Consult with legal counsel for specific advice.