Newsflash: DOL Announces Final FLSA Regulation Updates

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If you have been watching the news over the past year or so, you were aware that changes were coming in regard to the FLSA and its salary-basis test. Yesterday, those updates were released, and here are the key points you need to know: The new salary threshold will be $47,476 annually (or $913 weekly) – more than double the previous threshold of $23,660 annually (or $455 weekly).

  1. The rule includes an automatic increase every three years based on the 40th percentile of the weekly earnings of full-time salaried workers in the lowest wage census region.
  2. The rule updates the Highly Compensated Employee (HCE) threshold to the 90th percentile of full-time salaried workers nationally, which is $134,004 (up from $100,000).
  3. The rule now allows employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the new standard salary level.
  4. There is NO CHANGE to the duties test.
  5. Employers are required to comply with the new rule by DECEMBER 1, 2016.

Any employee who does not meet these new salary basis thresholds will no longer qualify as exempt, and will qualify for all of the protections of the FLSA, including overtime wages.

For a more in-depth summary of the final changes, click here.

Keep an eye out for more information on this topic, as well as an upcoming webinar, from SIA Group, or contact me to discuss how we can help you make strategic decisions in the reorganization of your staff!


Stefani M. Butschle, Esq. Director of Human Resources and In-House Counsel sbutschle@siagroup.com 910-478-3382 | Direct 800-682-7741 | Ext. 3382