Webinar: Learn About the DOL's Final Overtime Rule

Description

On May 18, 2016, the U.S. Department of Labor (DOL) released a final rule that will change federal overtime exemptions for administrative, executive, professional and computer professional employees, the so-called "white collar" worker classifications that have long been exempt from being paid time-and-one-half for working more than 40 hours per week. The final rule is scheduled to take effect Dec. 1, 2016. Automatic updates to the standard salary level and compensation level of highly compensated employees (HCE) will occur every three years, beginning Jan. 1, 2020.
 
The DOL’s changes to the overtime exemptions will touch almost every employer in the country, including the construction industry. Under the final rule, it will be much more difficult for employers to treat mid-level managers and professionals as exempt from overtime pay, thereby forcing employers to make hard staffing and economic choices in the workplace. 
 
Changes under the final rule include:
 

• Increases the minimum salary level to the 40th percentile of weekly earnings for full-time salaried workers in the lowest-wage census region (currently the South), which is $47,476 annually or $913 per week.
• Sets the total annual compensation for highly compensated employees (HCE) to the 90th percentile of full-time salaried workers nationally, which is $134,004.
• Allows employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the standard salary level.
• Automatically updates every three years the standard salary level to maintain a threshold equal to the 40th percentile of weekly earnings of full-time salaried workers in the lowest wage census region.  The HCE compensation level also is updated to maintain the 90th percentile of full-time salaried workers nationally. The automatic updates on these thresholds will begin Jan. 1, 2020.

The rule does not make any changes to the standard duties test.
 
Join ABC General Counsel Maury Baskin as he discusses the changes under the final rule and its impact on ABC member companies and chapters, as well as the steps they may need to take in order to comply.  
 
WHO SHOULD ATTEND
 

• Owners
• Senior-level Managers
• Human Resource Managers
• ABC Chapter Presidents, Attorneys and Staff