Memorandum from Doumar Martin, PLLC

Posted on June 13, 2016 · Posted in News

The U.S. Department of Labor has announced a final overtime rule dated May 23, 2016. The rule will take effect on December 1, 2016. In sum, for the executive, administrative and professional (“EAP”) or white collar exemptions from the overtime provision under the Fair Labor Standards Act (“FLSA”), the new annual salary threshold will be raised from $23,660 to $47,476 to qualify for an exemption from overtime, assuming an employee’s duties primarily involve executive, administrative, or professional duties. For the highly compensated employees (“HCE”) exemption, the new total annual compensation level will be raised from $100,000 to $134,004 to qualify for an overtime exemption, for office or non-manual work generally. There are general rules, but remember each case is different and it may be possible that an exception will apply. Please contact George Doumar or Raj Patel of our office us with any questions.