EMPLOYMENT LAW UPDATE “DOL Issues New Overtime Rule”

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The Department of Labor (“DOL”) released its final rule updating the overtime exemptions for “white collar” positions under the Fair Labor Standards Act (“FLSA”). The new rule goes into effect on December 1, 2016 and will extend overtime pay protections to over 4 million workers within the first year of implementation. Under the new rule, employees still must satisfy a two-part test to be considered exempt: the duties test and the salary test. The new rule did not change the duties test. It did, however, change the salary thresholds for both standard exemptions and the highly compensated employee exemption.

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