The United States Department of Labor (DOL) has changed the overtime exempt wage test rules under the Fair Labor Standards Act (FLSA) for some employee classifications. To be considered an exempt employee the new yearly minimum salary level is $47,476.00.
Are you ready to apply the new Federal overtime rules to your exempt employees? See our previous article New Overtime Exemption Rules.
Depending on your pay cycle that breaks out to:
Monthly – $3,956.33
Semi monthly – $1,978.17
Biweekly – $1,826.00
Weekly – $913.00
As part of our service, if you pay a salary to employees on a pay cycle that is less than the new minimum, Cardinal will be contacting you to help determine which of your employees are exempt under these new rules. Not all salaries below that level need to be changed. Remember that these wage levels under FLSA are generally white collar specific and may not apply to your employee’s positions. There may be other reasons the new rules do not apply, such as an employee working a set part-time schedule. Cardinal will walk you through the DOL tests and provide best practices.
Be sure to mark your company HR calendar for December 1, 2016 deadline.
We look forward to helping you make determination. Remember, if you are not part of the Cardinal family we are still offering FREE FLSA determinations.