Alfred A Cohen, CPA

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New Overtime Rules

The new overtime rules take effect on December 1, 2016.


White-collar exempt employees must earn at least $913 per week ($47,476 annually) to be disqualified from overtime pay (time-and-a-half in excess of a 40-hour work week). The old threshold was $23,660.

Nondiscretionary bonuses can satisfy up to 10 percent of the new salary requirement as long as they are paid on a quarterly or more frequent basis.

Highly compensated employees must be paid at least $134,004 annually to be disqualified from overtime pay.

Automatic updates to these salary level requirements will now occur every three years, beginning Jan. 1, 2020.

Review your employees salaries. You can either raise salaried employees to the new exempt levels or limit hours worked to 40 per week. 

Institute a time keeping process for all affected employees. 


Home Newsletters September, 2016

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