overtime for salaried worker close up of person with calculator counting money and making notes at home

Salaried Workers Rejoice – New Federal Rule Means You May Be Entitled to Overtime Starting December 1, 2016

overtime for salaried worker close up of person with calculator counting money and making notes at home

Finally, the long-awaited changes to the federal overtime regulations have been announced, with the federal definition for overtime being hours worked over 40 hours per workweek.

What does the new rule change?

  • Now salaried employees who receive less than $47,476 annually will be entitled to overtime pay in most cases, where previously employees who received a salary of less than $23,660 annually were entitled to overtime.
  • Highly compensated workers who previously were not entitled to overtime because they earned more than $100,000 annually may now be entitled to overtime pay if these salaried workers receive less than $134,004 annually.
  • An employer may now include non-discretionary bonuses or other compensation, like commissions, as part of the salary computation, as long as they do not exceed more than $4,747.60 (or 10% of $47,476) per year.
  • The new rule also provides that the salary levels may be increased every three years based on the state of the economy.

What does this all mean for salaried employees?

  • According to the U.S. Department of Labor, the new rule will impact more than $4.2 million employees and how they are paid!
  • More salaried employees will be entitled to overtime pay!
  • Other salaried employees may get a raise!

If you have questions about how these new changes may impact you, consult an experienced employment attorney.

Thank you for reading our blog! The information shared here is accurate at the time of posting, but may not reflect changes in the law. Although intended for educational purposes, this content is not legal advice. If you have any questions about your specific employment situation, you should contact an employment attorney.

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