Final FLSA Overtime/Exempt Rule Released by DOL

May, 2016

By Jenna Reed, JD, MBA, General Counsel and Director, Compliance Services
Cascade Employers Association
[email protected]

On May 18, 2016, The Department of Labor (DOL) released the much anticipated final rule regarding employee classifications under the Fair Labor Standards Act (FLSA) and employee eligibility for overtime.

We are currently analyzing the final rule in its entirety, but would like to share a few of the key points:

  • The salary threshold will increase from $455 per week ($23,660 per year) to $913 per week ($47,476 per year).
  • Employers may include non-discretionary bonuses and other non-discretionary incentive income (including commissions) in an employee’s total compensation calculation.
  • The minimum salary threshold will adjust every three years, starting in 2020.
  • The rule will take effect December 1, 2016.

It’s important to us that you have all the information you need to ensure that your employees are properly classified once the final rule becomes effective as well as making sure you are prepared for Oregon’s new minimum wage law which takes effect July 1, 2016. Accordingly, Cascade will be offering several training classes to educate you on the specifics of these changes, the impact they may have, what you need to do to prepare, and of course, how we can support you.

Keep an eye out for further information from us about these upcoming opportunities. You may also check our website for additional information or contact us at 503-585-4320.


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