Will the Department of Labor’s new overtime rule impact your business or nonprofit?
Last Wednesday, May 18, 2016, President Obama and DOL Secretary Perez released a new rule that will automatically extend overtime pay protections to millions of American workers. It is estimated that the rule will increase wages by $12 billion over the next 10 years. In Iowa, alone, an additional 120,000 workers may become eligible for overtime pay.
The rule raises the salary threshold for workers who are eligible for overtime under federal law from $23,660 to $47,476 per year. It also raises the highly compensated employee threshold from $100,000 to $134,004. The effective date is December 1, 2016, and in the meantime, employers should carefully review their hiring and personnel strategies.
You can review the announcement, the final rule and general guidance for businesses and nonprofits here.
Or visit with your LWBJ advisor.