Credit unions head into overtime preparing for new wage and hour rules

first_imgThe Wage Hour Division of the U.S. Department of Labor recently raised the dollar-amount salary thresholds required for “white collar exemptions” to the overtime requirements of the federal Fair Labor Standards Act.  The exemptions apply to administrative, professional, and executive personnel.  The Kaufman & Canoles credit union team has been carefully following the changes.What Does the new Rule do?The rule is effective December 1, 2016, and implements two critical changes to the “white collar” exemptions from overtime.First, the minimum weekly salary required to be paid to an employee to qualify for an exemption has been raised to $913 per week, which works out to $47,476 for a full year.  Workers who are paid less than $913 per week are not eligible for exemptions from overtime, no matter what their duties are.  To claim an administrative, professional or executive exemption, the worker must meet the duties test and the new weekly salary test.Second, the minimum compensation required to qualify as a highly compensated employee has been increased to $132,004 annually. A highly-compensated employee is an exempt employee so long as the employee meets a shorter, more minimalist “duties test.” continue reading » 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more