By now, most businesses have begun preparing for the Department of Labor’s (DOL) new “white-collar” overtime rule, which goes into effect on December 1, 2016. Although the most significant change contained in the controversial new rule is the doubling of the current salary threshold for determining whether an employee is automatically entitled to overtime pay, another important feature of the rule is the requirement for inflationary adjustments to the minimum salary threshold every three years.
This memorandum looks at the mechanics of the automatic update provisions, and what companies should expect going forward as they prepare to begin implementing the new requirements on December 1.
Members of the Equal Employment Advisory Council (EEAC) can read more here.