New Overtime Rules May Come Sooner Than Expected
The new overtime rules proposed by the Fair Labor Standards Act may be finalized as early as May of this year, and could go into effect as soon as 60 days thereafter. The new overtime rules categorize employees into two groups: “standard” and “highly compensated”. In order to be considered an exempt employee, standard employees must be paid a salary of $50,440 a year in 2016, and highly compensated employees, or HCE, must be paid a salary of $122,148 a year in 2016. In preparation, employers should review their current population and various salary levels. This will help to determine which employees currently classified as exempt need to move to a non-exempt classification. Employers should be aware of the imminent changes and prepare accordingly.
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