Simms Showers Legal Alert
New Fair Labor Standards Act (FLSA) Changes to Take Effect December 1, 2016
By: H. Robert Showers, Esq. & Daniel J. Hebda, Esq.
The Department of Labor recently issued significant and sweeping salary threshold changes to the Fair Labor Standards Act (FLSA) through its Final Rule, published on May 18, 2016. The Rule is set to go into effect on December 1, 2016. These changes are the result of a Presidential Memorandum issued by President Obama in 2014 to the Department of Labor, which has now published a summary of its actions here.
These 2016 changes significantly raise the salary threshold that are required for executive, professional, and administrative white collar employees, who already perform exempt duties, to remain exempt from overtime under FLSA. Here are some of the details:
- The salary threshold for executive, professional, and administrative white collar employees will be raised to $913 per week ($47,478 per year), up from $455 per week ($23,660 per year).
- The salary threshold for Highly Compensated Employees (HCE’s) will be raised from $100,000, to $134,004.
- These thresholds will now be reviewed on a recurring basis every three years based on cost of living.
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