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New Overtime Rules as of December 1. Are You Ready?

Dwight Ryan CEO
    November 2016
 MedTech For Solutions

MedTech HR Alert
The Department of Labor’s Final Rule Revising Overtime Regulations Takes Effect On December 1, 2016

Despite a Bill from the US Congress, a combined emergency motion from 21 States, petitions from organized business groups, and many others to postpone the effective date, it appears the revised overtime rule will still take effect next month.
 
Under the final rule:
 
  • The annual salary threshold for exempt positions will jump from $23,660 to $47,476 (or from $455 to $913 per week), and will be updated every three years. That’s more than double the old threshold.
  • There will be no change in the duties test used to determine whether employees earning a minimum of $47,476 should be classified as exempt or nonexempt from overtime. Exempt employees must pass two tests: Salary and Duties.
  • The final rule allows employers to use nondiscretionary bonuses and incentive payments to satisfy up to 10% of the new salary threshold, provided these payments are made on a quarterly or more frequent basis.
  • The final rule raises the annual Highly Compensated Employee salary threshold from $100,000 to $134,000.
As written, the revised rule is expected to extend overtime protection to 4.2 million workers nationwide who are not currently eligible under federal law. Nevertheless, it appears most MedTech clients will have minimum impact from the new rule.  Are you compliant?
 
If you need help or have any questions, contact MedTech HR at info@medtech4solutions.com
MedTech For Solutions, Inc | 866-634-9144 | dryan@medtech4solutions.com | http://www.medtech4solutions.com
475 Park Ave South
New York, NY 10016
MedTech For Solutions, Inc, 475 Park Ave South, New York, NY 10016