DOL?s New Overtime Rule ? A very quick look

Effective December 1, 2016, the Department of Labor’s Final Rule focuses primarily on updating the salary and compensation levels needed for executive, administrative and professional employees (EAP) to be exempt. Specifically, the Final Rule:

• Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South, which is $913 per week or $47,476 annually for a full-year worker;
• Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally, which is $134,004; and
• Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.

Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level. The Final Rule makes no changes to the duties tests. SGIA will be holding a webinar, Understanding the new US DOL's Overtime Rule,  to discuss the changes associated with this final rule on June 22nd. Mark your calender and plan to attend.  Sign up to receive the most up-to-date regulatory and legislative information about specialty imaging.