Vol. 40, No. 6

What you need to know now about new overtime rules

Whether you're an executive or a staff member who may now be eligible for overtime pay, chances are, you've heard something about revised rules from the Department of Labor that will take effect on Dec. 1, 2016.

The basics

Here's an overview of some of the key changes:

  • Under the current rules, employees whose annual salary is $23,660 or less automatically qualify for overtime pay. The revised rules specify that anyone making $47,476 or less will automatically qualify.
  • Employers who wish to avoid paying overtime may choose to increase employees' salaries—especially for those who are close to the revised figure—or reduce their work hours.
  • Those who make more than $47,476 can be considered exempt from overtime pay if they fall within other guidelines involving professionals who have an advanced degree and/or a certain amount of autonomy in their work.
  • There will still be a category for highly compensated workers who are automatically exempt from overtime pay. Currently, the threshold is a salary of $100,000 per year; this will increase to $134,000.

For more information

There are several ways to get up to speed before the revisions take effect, and to make sure you don't miss any important clarifications or updates:

  • A recent article in ABA Journal offers more details and a number of links to additional resources.
  • Another article will appear in the July issue of NABE News.
  • Bar Leader, Bar Leader Weekly, and NABE News may have additional information as needed between now and December.
  • The Department of Labor itself has posted a list of FAQs regarding the revised rules.