Don’t forget that the new federal regulation regarding overtime pay becomes effective December 1, 2016. An employee is exempt from overtime pay if he or she meets certain tests regarding the employee’s duties and is paid on a salary basis that is not less $970 a week ($50,440 per year). Hopefully, you have already determined if you need to increase an employee’s salary or transition the employee from salary to hourly compensation. In addition, please remember that the new regulation also increased the minimum salary for highly compensated employees (“HCE”) from $100,000.00 to $134,004.00.
In addition to increasing minimum salary requirements, the new regulations also established a mechanism that will provide automatic updates to salary and compensation levels every three years.
Laura M. Trujillo
Disclaimer: This blog is for information purposes only. Legal advice is provided only through a formal, written attorney/client agreement.