As you may know, the Department of Labor has a new overtime rule which takes effect Dec 1, 2016.
To summarize, if an employee is being treated as an exempt employee (not receiving overtime) then their annual salary must be at least $913 per week (or $47,476 annually).
If employers have employees that they need to change by Dec. 1, 2016 the choices are:
- Raise the worker’s annual salary to at least $47,476
- Switch them to an hourly rate and pay them overtime after 40 hours per week
- Keep the salary the same but limit the hours to under 40 per week
It is interesting to note that this change will increase the wages for more than 4.2 million Americans (including 84,000 MA workers) by either a salary raise or overtime when they work more than 40 hours.
Here are a few links from the DOL: