Subject: FW: Change In Overtime Exemption Rules
From: "Joseph E. Fata" <[email-masked]>
To: "[email-masked]" <[email-masked]>
Date: Fri, 20 May 2016 12:53:52 -0400

Hi Mike, 
 
Check this out and see if there may be a potential posting change. Thanks.
 
Joe
 
From: [email-masked]
To: [email-masked]
Subject: Change In Overtime Exemption Rules
Date: Thu, 19 May 2016 19:54:45 +0000

 
 
United States Department of Labor Raises Salary Thresholds for Overtime Exemptions
 
On May 17, 2016, the White House and the United States Department of Labor announced the finalization of the long-anticipated rule increasing the salary thresholds for most employees who currently are exempt from
 overtime pay.  The new threshold, which goes into effect on December 1, 2016, increases the minimum salary for full-time exempt employees from $455 per week to $913 per week ($47,476 per year).  Under the final rule, the new salary threshold will be adjusted
 for inflation every three years, beginning January 1, 2020.
 
Also being adjusted effective December 1, 2016, is the salary threshold for "highly compensated employees" who are subject to a streamlined test for exemption from overtime rules.  That threshold rises from the
 current $100,000 per year to $134,004 per year.  The final rule also allows up to 10 percent of the salary threshold for non-highly compensated exempt employees to be met by nondiscretionary bonuses, incentive pay or commissions, provided these payments are
 made on at least a quarterly basis.
 
Please keep in mind that the other parts of the exemption rules remain in effect:  In order to be exempt from overtime, employees will still have to meet the duties tests (i.e., perform exempt work, such
 as managerial, professional or administrative) and most must be paid on a salaried basis, in addition to meeting the new salary threshold.  The Department of Labor has summarized its new rule at
https://www.dol.gov/sites/default/files/overtime-overview.pdf.
 
For questions or further clarification regarding this ruling, please contact Labor, Employment & Civil Rights Department Chair Brandon W. Zuk at 517.377.0831 or [email-masked], attorney Michael E. Cavanaugh
 at 517.377.0812 or [email-masked], or attorney Aaron L. Davis at 517.377.0822 or [email-masked].

 

 

Edward J. Castellani JD, CPA | Shareholder
 | Fraser Trebilcock
p: 517.377.0845 
f:
 517.482.0887
a: 124
 W. Allegan Street, Suite 1000 Lansing, MI 48933
w: fraserlawfirm.com

  

 
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