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New Federal Overtime Regulations - May 2016

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LABOR & EMPLOYMENT PRACTICE GROUP
Employers! This is an important update to our previous newsletter concerning changes in the FLSA overtime regulations. The final version of the rule has been published! Here's what you need to know: The new rule was issued on May 18, 2016. As we stated in our last newsletter, this rule changes the FLSA regulations concerning exemptions from overtime pay for executive, administrative, professional, outside sales, and computer employees (cumulatively, "Workers").[[1]] Salaried Workers earning less than $913 dollars per week or $47,476 annually are now nonexempt and eligible for overtime pay. This salary threshold will increase every three years. The increase is based on the 40th percentile of the weekly earnings of full-time salaried workers in the lowest-wage Census region, which currently happens to be the South. Predictions for the first update, scheduled for January 1, 2020, estimate that the t…