The U.S. Department of Labor’s new overtime ruling that affects paying some exempt employees for overtime work will take effect next week on Dec. 1.
On that date, initial increases to the standard salary level and the highly compensated employees total annual compensation requirement will take effect.
The DOL’s final rule is broken down into three major provisions:
• 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 ($913 per week; $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 ($134,004)
• 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
For additional information on the overtime rule, the Automotive Service Association has created an interactive webinar on the DOL rule on its YouTube.
The webinar includes presentation from Brian Farrington of Cowles & Thompson’s Employment Law Practice Group in Dallas; Darrell Amberson, president of operations at LaMettry’s Collision in Minneapolis; and Ed Cushman, president of C&H Foreign Auto Repair in Spokane, Wash.
Additionally, Tire Review Columnist Susan Bassford Wilson, an attorney with Constangy, Brooks, Smith & Prophete LLP, has outlined the new ruling in her story “$47,476 is the new $23660.”