Overtime Pay Threshold For Salaried Employees Will More than Double on December 1 – Is Your Business Ready?

  • July 20th, 2018
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The United States Department of Labor (“USDOL”) will raise its white-collar exemption threshold for overtime pay for salaried employees to $47,000 on December 1, 2016.

The Fair Standard Labor Act (“FLSA”) was the original congressional act that implemented overtime pay for salaried employees. The idea is that if you work more than the standard 40 hours per week (a full-time job), you receive extra compensation.

However, the “white-collar” exception to the overtime pay rule states that an employer does not have to pay overtime compensation to employees whose salaries are above a mandated thresholdand whose tasks are primarily “executive, administrative, or professional” in nature. FLSA originally instituted an overtime pay threshold of $13,000 per year. In 2004, the threshold was raised for the first time to $23,660 per year. In Spring 2016, the USDOL announced that it will raise the overtime pay threshold amount a second time.

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