Workplace Wise - Iowa Employment Law Attorneys

Wednesday, May 18, 2016

Breaking News: DOL Releases Final Rule Expanding Overtime Pay

By Elizabeth A. Coonan


Despite vocal opposition from the business community, the Department of Labor has released a final rule providing for substantial changes to the overtime exemption provisions of the Fair Labor Standards Act (FLSA). The final rule, effective December 1, 2016, will:
  • Double the salary threshold from $455/week ($23,660 per year) to $913/week ($47,476 per year);
  • Automatically increase the salary threshold every three years; and
  • Increases the Highly Compensated Employee Exemption to $134,004.
The final rule does not make any changes to the duties test for executive, administrative and professional exemptions.

We will continue to update you regarding the far-reaching implications of this significant development. In the meantime, contact Beth Coonan or or any of our Employment & Labor Law Practice Group Members for more information about the impact of these sweeping changes on your business.


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