Department of Labor’s New Overtime Rule – Are You Prepared?

Department of Labor’s New Overtime Rule – Are You Prepared?



The Department of Labor (DOL) has implemented a new overtime rule.  This new law becomes effective on December 1, 2016.  In summary the rules regarding overtime remain the same (i.e. 1.5 times the hourly rate for over 40 hours per week (and over 8 hours per day in certain states)).  The new rule set the exempt level at $47,476 (this is double what the current exempt level).  The changes will make an estimated 4.2 million workers eligible for overtime pay effective December 1, 2016.


Here’s what you need to do to prepare your organization:


1.         Determine if the FLSA overtime changes will affect your business

2.         Make a plan for compliance

3.         Federal Salary Threshold Now Exceeds The California Threshold

4.         California Employers Remain Subject to California’s Law When More Favorable to Employees

5.         Federal Rule Did Not Change Duties Test But California Employers Must Continue To Follow the State’s 51% Rule

6.         Federal Rule’s Automatic Increases Mean That California Employers Will Need to Remain Aware of Both The Federal And State Thresholds to Ensure Compliance 


Let’s talk.  Éclat Group can help guide you thru this process and much more.


Brilliant.  Success.  Éclat.