If you are an employer, you’ve probably heard that there are new laws about who qualifies for overtime pay.  It’s been about two years in the making.  The most important items to understand are:

  1. The 2016 salary threshold is $913 per week or $47,476 annually for a full-year worker.  That’s adjusted down slightly from earlier reports.
  2. The automatic updates will be every three years beginning January 1, 2020.
  3. The effective date of the new rule is December 1, 2016.

As an FYI, the Labor Department estimates an additional 4.2 million executive, administrative and professional workers who earn above the old threshold but below the new one will be entitled to time-and-a-half wages for each hour they work beyond 40 a week.

Here’s the Labor Department Fact Sheet with more info or you can contact your JMF CPA with further questions.