{"id":96,"date":"2016-05-18T17:38:17","date_gmt":"2016-05-18T22:38:17","guid":{"rendered":"https:\/\/employcoblog.wordpress.com\/?p=96"},"modified":"2017-07-07T14:44:49","modified_gmt":"2017-07-07T19:44:49","slug":"just-announced-new-overtime-law","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2016\/05\/18\/just-announced-new-overtime-law\/","title":{"rendered":"JUST ANNOUNCED:  New Overtime Rule"},"content":{"rendered":"<p><strong><em>NEW OVERTIME RULE<\/em>\u00a0<\/strong><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-97 size-large\" src=\"http:\/\/192.168.1.62\/blog\/wp-content\/uploads\/2016\/05\/overtime.jpg?w=636\" alt=\"Overtime\" width=\"636\" height=\"426\" srcset=\"https:\/\/www.employco.com\/blog\/wp-content\/uploads\/2016\/05\/overtime.jpg 650w, https:\/\/www.employco.com\/blog\/wp-content\/uploads\/2016\/05\/overtime-300x201.jpg 300w, https:\/\/www.employco.com\/blog\/wp-content\/uploads\/2016\/05\/overtime-538x360.jpg 538w\" sizes=\"auto, (max-width: 636px) 100vw, 636px\" \/>The Department of Labor (DOL) released historic legislation today that will drastically increase the number of employees who are eligible for overtime pay.<\/p>\n<p>Effective December 1, the salary threshold under which employees are automatically non-exempt will increase from $23,660 to $47,476.<\/p>\n<p>Every employee who earns less than $47,476 will become eligible for overtime pay, which is 1.5 x regular pay for hours worked over 40 in a week.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-103\" src=\"http:\/\/192.168.1.62\/blog\/wp-content\/uploads\/2016\/05\/exempt.jpg\" alt=\"Exempt\" width=\"636\" height=\"39\" srcset=\"https:\/\/www.employco.com\/blog\/wp-content\/uploads\/2016\/05\/exempt.jpg 613w, https:\/\/www.employco.com\/blog\/wp-content\/uploads\/2016\/05\/exempt-300x19.jpg 300w\" sizes=\"auto, (max-width: 636px) 100vw, 636px\" \/><\/p>\n<p><strong>EXAMPLE:<\/strong><\/p>\n<ul>\n<li>Today: Sally is an exempt supervisor with an annual salary of $45,000 ($21.63\/hr).\u00a0 If Sally averages 45 hours per week, she still earns <strong><u>$45,000 per year<\/u><\/strong><\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"105\"><strong>Job Type<\/strong><\/td>\n<td width=\"102\"><strong>Hourly Pay<\/strong><\/td>\n<td width=\"123\"><strong>Hours Worked<\/strong><\/td>\n<td width=\"120\"><strong>Annual Pay<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"105\">Exempt<\/td>\n<td width=\"102\">$21.63<\/td>\n<td width=\"123\">45\/wk<\/td>\n<td width=\"120\">$45,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Starting December 1, if Sally\u2019s hourly pay stays the same ($21.63) and she continues to work 45 hours per week, she will become an hourly\/non-exempt employee earning <strong><u>$53,436 per year<\/u><\/strong> ($45,000 in regular pay plus $8,436 in overtime pay)<\/li>\n<\/ul>\n<p><strong>POSSIBLE EMPLOYER STRATEGIES &amp; EXAMPLES<\/strong><\/p>\n<ul>\n<li>Keep employees\u2019 hourly pay and hours worked the same. Affected employees become non-exempt and eligible for overtime pay<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"105\"><strong>Job Type<\/strong><\/td>\n<td width=\"102\"><strong>Hourly Pay<\/strong><\/td>\n<td width=\"123\"><strong>Hours Worked<\/strong><\/td>\n<td width=\"120\"><strong>Annual Pay<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"105\">Non-Exempt<\/td>\n<td width=\"102\">$21.63<\/td>\n<td width=\"123\">45\/wk<\/td>\n<td width=\"120\">$53,436<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Increase applicable employees\u2019 salaries to $47,476.\u00a0 The employee will earn more but continue to be classified as salaried\/exempt<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"105\"><strong>Job Type<\/strong><\/td>\n<td width=\"102\"><strong>Hourly Pay<\/strong><\/td>\n<td width=\"123\"><strong>Hours Worked<\/strong><\/td>\n<td width=\"120\"><strong>Annual Pay<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"105\">Exempt<\/td>\n<td width=\"102\">$22.83<\/td>\n<td width=\"123\">45\/wk<\/td>\n<td width=\"120\">$47,476<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Keep employees\u2019 hourly pay the same (employee is eligible for overtime pay) but cap their hours at 40 per week to avoid paying overtime wages<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"105\"><strong>Job Type<\/strong><\/td>\n<td width=\"102\"><strong>Hourly Pay<\/strong><\/td>\n<td width=\"123\"><strong>Hours Worked<\/strong><\/td>\n<td width=\"120\"><strong>Annual Pay<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"105\">Non-Exempt<\/td>\n<td width=\"102\">$21.63<\/td>\n<td width=\"123\">40\/wk<\/td>\n<td width=\"120\">$45,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Decrease employees\u2019 hourly pay (factor in estimated overtime pay) and allow employees to continue working the same number of hours per week which would correspond to the same annual earnings<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"105\"><strong>Job Type<\/strong><\/td>\n<td width=\"102\"><strong>Hourly Pay<\/strong><\/td>\n<td width=\"123\"><strong>Hours Worked<\/strong><\/td>\n<td width=\"120\"><strong>Annual Pay<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"105\">Non-Exempt<\/td>\n<td width=\"102\">$18.22<\/td>\n<td width=\"123\">45\/wk<\/td>\n<td width=\"120\">$45,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Based on a job duties test, employees earning at least $47,476 may qualify to be exempt from overtime pay.\u00a0 Exemptions can include employees classified as executive, administrative, professional, outside sales or computer.<\/p>\n<p>Contact us for support with your company\u2019s compensation strategy and earnings calculations. We\u2019re here to help.<\/p>\n<p>Jason Eisenhut<br \/>\n630.286.7341<br \/>\n<a href=\"mailto:jeisenhut@employco.com\">jeisenhut@employco.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NEW OVERTIME RULE\u00a0 The Department of Labor (DOL) released historic legislation today that will drastically increase the number of employees who are eligible for overtime pay. Effective December 1, the salary threshold under which employees are automatically non-exempt will increase&hellip;  <\/p>\n<p class=\"more-link\"><a href=\"https:\/\/www.employco.com\/blog\/2016\/05\/18\/just-announced-new-overtime-law\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-96","post","type-post","status-publish","format-standard","hentry","category-human-resources"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>JUST ANNOUNCED: New Overtime Rule - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2016\/05\/18\/just-announced-new-overtime-law\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"JUST ANNOUNCED: New Overtime Rule - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"NEW OVERTIME RULE\u00a0 The Department of Labor (DOL) released historic legislation today that will drastically increase the number of employees who are eligible for overtime pay. 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Rob Wilson, President of Employco USA and employment solutions expert says, \u201cUnder the new proposal, employees earning less than $35,308 per year\u2026","rel":"","context":"In &quot;Human Resources&quot;","block_context":{"text":"Human Resources","link":"https:\/\/www.employco.com\/blog\/category\/human-resources\/"},"img":{"alt_text":"Department of Labor","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_DOL.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5369,"url":"https:\/\/www.employco.com\/blog\/2024\/05\/23\/hr-newsletter-new-overtime-rule\/","url_meta":{"origin":96,"position":1},"title":"HR Newsletter: New Overtime Rule","author":"Employco USA","date":"May 23, 2024","format":false,"excerpt":"On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule will take effect on July 1, 2024. Increased Salary Level\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2372,"url":"https:\/\/www.employco.com\/blog\/2018\/10\/24\/changes-to-overtime-law-loom-what-employers-need-to-know\/","url_meta":{"origin":96,"position":2},"title":"Changes to Overtime Law Loom: What Employers Need to Know","author":"Employco USA","date":"October 24, 2018","format":false,"excerpt":"Employment trends expert weighs in on private-sector overtime pay requirements Overtime continues to be a developing hot button topic in states across the United States, with Washington being the latest state to draft a proposal which would offer overtime to professional workers who earn 1.5 times that of minimum wage.\u2026","rel":"","context":"In &quot;Payroll Administration&quot;","block_context":{"text":"Payroll Administration","link":"https:\/\/www.employco.com\/blog\/category\/payroll-administration\/"},"img":{"alt_text":"Overtime","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Overtime.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4080,"url":"https:\/\/www.employco.com\/blog\/2022\/07\/14\/hr-newsletter-proposed-overtime-rule-expected-in-october\/","url_meta":{"origin":96,"position":3},"title":"HR Newsletter: Proposed Overtime Rule Expected in October","author":"Employco USA","date":"July 14, 2022","format":false,"excerpt":"In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. According to the agency\u2019s regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Proposed Overtime Rule Expected in October","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":2708,"url":"https:\/\/www.employco.com\/blog\/2019\/11\/13\/here-is-how-overtime-pay-will-change-in-jan-2020\/","url_meta":{"origin":96,"position":4},"title":"Here is How Overtime Pay Will Change in Jan. 2020","author":"Employco USA","date":"November 13, 2019","format":false,"excerpt":"Employment expert explains what employers need to know about overtime pay in the new year Starting in January 2020, important changes are coming to Americans\u2019 paychecks. Beginning in the new year, new overtime provisions from the Fair Labor Standards Act will go into place. \u201cPreviously workers were automatically entitled to\u2026","rel":"","context":"In &quot;HR Solutions&quot;","block_context":{"text":"HR Solutions","link":"https:\/\/www.employco.com\/blog\/category\/hr-solutions\/"},"img":{"alt_text":"Overtime","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Overtime2.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":5345,"url":"https:\/\/www.employco.com\/blog\/2024\/04\/18\/hr-newsletter-best-practices-for-reclassifying-employees-as-non-exempt\/","url_meta":{"origin":96,"position":5},"title":"HR Newsletter: Best Practices for Reclassifying Employees as Non-exempt","author":"Employco USA","date":"April 18, 2024","format":false,"excerpt":"The Fair Labor Standards Act (FLSA) provides minimum wage and overtime pay protections to most employees. Employees generally must be classified as \u201cnon-exempt\u201d and, therefore, be eligible for such minimum wage and overtime protections unless they meet the criteria to be classified as \u201cexempt\u201d from minimum wage and overtime requirements.\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/96","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/comments?post=96"}],"version-history":[{"count":1,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/96\/revisions"}],"predecessor-version":[{"id":387,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/96\/revisions\/387"}],"wp:attachment":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/media?parent=96"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/categories?post=96"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/tags?post=96"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}