The Department of Labor (DOL) recently published its much-anticipated final rule on overtime eligibility for “white collar” salaried workers under the Fair Labor Standards Act (FLSA). The rule is scheduled to go into effect on December 1, 2016.
Among other things, the controversial rule essentially doubles the current salary threshold for determining whether a “white collar” employee is automatically entitled to overtime pay, to $47,476, or $913 a week. DOL estimates that several million currently FLSA-exempt executive, administrative, and professional workers will become eligible for overtime under the new rule.
Also included in the new rule is an important provision that will allow employers to apply nondiscretionary bonus payments toward meeting 10 percent of the new minimum salary threshold. This guide explores the relatively complicated “nondiscretionary bonus” provision, and how, if used correctly, it might be a benefit to employers, especially with respect to employees who are paid close to but under the new salary threshold.
Members of the Equal Employment Advisory Council (EEAC) can read more here.