Department of Labor Issues Final Rules on Overtime Exemptions

By: Andrew Frost

On July 6, 2015, at the behest of President Obama, the U.S. Department of Labor (the “DOL”) proposed new rules regarding the exemption of executive, administrative, and professional employees from the minimum wage and overtime pay requirements of the Fair Labor Standards Act (the “FLSA”). The proposed rules did not change the job duties tests for exemptions, but did increase the salary basis tests with annual adjustments to place the salary thresholds at the 40th percentile of full-time salaried employees. The DOL released the final overtime exemption rules this morning, with an effective date of December 1, 2016.

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