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New White Collar Exemption Rules Effective December 1, 2016

The wait is over. On May 18, President Obama and the Secretary of Labor announced the Department of Labor’s final rule overhauling the white collar exemptions to overtime requirements for executive, administrative, professional, and highly compensated employees.  The new salary threshold for employees exempt under the executive, administrative, and professional exemptions will be $913 per week.  This translates to $47,476 annually.  The total annual compensation requirement for highly compensated employees will be $134,004.  These new rules will go into effect on December 1, 2016.  The thresholds will be adjusted every three years, with the first adjustment set to occur January 1, 2020.  The government expects approximately four million employees will be affected.

Brody and Associates regularly advises management on complying with state and federal employment laws including wage and hour laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.