The Department of Labor has announced the new rule for overtime. The rule is to take effect December 1st and will have major impact on many businesses. The provisions businesses need to be aware of include:
They must be paid on a salary basis not subject to reduction based on quality or quantity of work (“salary basis test”) rather than, for example, on an hourly basis;
- Their salary must meet a minimum salary level, which after the effective date of the Final Rule will be $913 per week, equivalent to $47,476 annually for a full-year worker (“salary level test”); and
- The employee’s primary job duty must involve the kind of work associated with exempt executive, administrative, or professional employees (the “standard duties test”).
More information can be found at https://www.dol.gov/featured/overtime/