As anticipated in today’s earlier blog post, we are getting an announcement tomorrow at 2 p.m. Eastern on May 18, 2016. The White House announced the expanded overtime laws in a press release on May 17, 2016. The actual regulations will be published and come with a compliance date of December 1, 2016.
The final regulations vary significantly from the proposed regulations
1.The salary threshold for meeting the exemption is $47,476 annually ($913/weekly) up from the current threshold of $23,660 but lower than the original proposal of $50,440.
2. The salary threshold will be updated every three years based on wage growth versus the annual update.
3. Raises the highly compensated exemption from $100,000 to $134,004.Makes no changes to the duties tests versus the proposal that primary duty be more than 50% of the employee’s time.
4. Allows incentive compensation to comprise at least 10% of the new salary threshold.
We will continue to provide additional information as it is announced and available.
