Upcoming Changes To FLSA Overtime Rules

The final rules regarding the amendments to the Fair Labor Standards Act (FLSA) White Collar Exemption Regulations will be published in or before July 2016 and will become effective 60 days after publication. The salary threshold for the white-collar exemptions is expected to be anywhere from $47,000 to $50,440—more than twice the current annual level of $23,660. For highly compensated employees, the threshold will be set to the annualized value of the 90th percentile of earnings for full-time salaried workers, or $122,148 annually. The DOL estimates that the 7.4 million affected businesses will spend $592.7 million to comply with the new rule.

The upcoming changes would immediately entitle approximately five million additional employees to overtime compensation, which will hugely impact employers’ ability to continue to classify certain white-collar employees as exempt. Moreover, the increased salary required for FLSA overtime exemptions will likely result in increased liability for misclassification of exempt employees.

Ali Law Group can help you effectively navigate the issue of employee misclassification and many others that constantly arise in labor and employment law. Contact us today at 631-423-3440 or visit alilawgroup.com.