On May 18th, 2016, President Obama and Secretary Perez announced the publication of the Final Overtime Regulations under the Fair Labor Standards Act (FLSA) that appeared on the federal agency on May 17th. On May 23rd, these new rules were signed into law. What it does is extend overtime pay protections to an estimated 4 million salaried workers with a threshold of $47,476 per year.
Other portions of the new overtime regulations include:
- An automatic salary threshold increase very three years. These three-year adjustments will begin on January 1, 2020. This will set the threshold to the level of $51, 0168 by the year 2020.
- The highly compensated employee (HCE) exemption is now set at $134,004 per year.
- The standard duties test is unchanged.
- The new Final Overtime Regulations will take effect on December 1, 2016.
- Restrictions have been lifted so that employers will be permitted to use commissions, non-discretionary bonuses, and incentive pay to satisfy 10% of the salary level requirements set forth in the Final Rule of the FLSA.
A full text of the new regulations is available by going to the Federal Register web page.
Still confused or have questions about how the new regulations will affect you and your company? Net PEO will be hosting a webinar featuring Gordon Berger of FordHarrison, Global HR Attorneys, on Thursday, June 2, 2016, from 2-3pm ET to discuss the new regulations and their impact on the PEO industry and their clients.
Don’t miss this important event! Keep your company compliant by getting the latest information on the new FLSA regulations, and register now to join us Thursday, June 2nd!
If you can’t make the webinar, NetPEO can help by coming to your company to discuss how to stay in compliance and carefully explain it to you. Companies choose NetPEO because of the full range of services that we off including payroll, management of employee benefits and liability management for employers, brokerage services, as well as employee leasing.
Contact us today to discuss the new regulations and the needs of your company today and in the future. Call to schedule a free assessment today.