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FLSA Overtime Rule Change

June 10, 2016

On May 18, 2016 the Department of Labor (DOL) released a new rule overhauling overtime wage payment in the United States. Under the new rule, the salary threshold will increase from $23,660 to $47,476 per year. It also increases the salary threshold for highly compensated individuals from $100,000 to $134,004 per year.

This new rule could affect more than 4 million American workers. According to estimates from the DOL, employers will spend more than $592 million to comply with the new rule. Employers who fail to implement overtime changes could face lawsuits, criminal charges, fines and restrictions in commerce.


Employers have until December 1, 2016 to comply, however, delaying preparation efforts could result in costly penalties. For more information on the new overtime rule, contact us today.

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