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US Department of Labor Changes to the Overtime Laws. New Overtime Rule. Effective December 1, 2016 ALL employees (salaried and/or hourly) earning less than $47,476 annually ($22.83 per hour) will be eligible for overtime pay, if they work over 40 hours per week.
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New Overtime Rule • Effective December 1, 2016 ALL employees (salaried and/or hourly) earning less than $47,476 annually ($22.83 per hour) will be eligible for overtime pay, if they work over 40 hours per week. • Currently the threshold for overtime pay exemption is $23,600 annually ($11.35 per hour).
Who does this affect? • Any staff member who currently earns between $23,600 - $47,476 will be affected by this new law. • Effective December 1, 2016 these employees are no longer exempt from overtime pay, regardless of being salaried or performing executive, administrative, professional duties.
Does this apply to government employers? • Yes, the Fair Labor Standards Act (FLSA) applies to state and local governments. • The FLSA outlines minimum wage and overtime pay regulations.
How must overtime be paid? • Unless exempt (Ex: Those earning over $47,476 per year, and/or highly compensated employees), overtime pay must be paid to ALL employees for hours worked in excess of 40 hours per week. • Overtime pay must not be less than time and 1/2. • Government employers may use comp time instead of cash payment for overtime hours.