A Takeaway On The New Overtime Rules

The Department of Labor’s new overtime rule is 508 pages long, but this post from Audrey Mross, head of the Labor and Employment Section at Munck Wilson Mandala in Dallas, boils it down to what for many employers will be the basics. One such basic: starting on December 1 of this year, the minimum annual salary to preserve most exemptions will increase from $23,660 to $47,476, and the minimum annual salary to preserve the exemption for highly compensated workers will increase from $100,000 to $134,004 per year. These and other new provisions mean that many employers will have some important strategic decisions to make. “For example, do you increase the minimum salary, where needed, to preserve the exemption? Or do you concede nonexempt status and manage the overtime liability by clamping down on hours worked?”