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Tracy Kosbau
Vice President of Marketing and Public Relations

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Start Planning for Impact of New DOL Overtime Rule
The new overtime rule from the Department of Labor (DOL) go into effect on December 1, 2016.

The new rule:

  • Guarantees time-and-half pay to any salaried employee earning under $47,476 a year ($913 a week) and who works more than 40 hours in a week. That’s double the current salary threshold of $23,660 ($455 a week). 

  • Automatically updates the salary threshold every three years, tying it to the 40th percentile of full-time salaried workers in the lowest-income Census region (currently the South). The first update would be Jan. 1, 2020. Based on current wage trends, the DOL projects a salary threshold of $51,000 by Jan. 1, 2020.

  • Makes no changes in the duties tests used to determine whether a salaried employee above the threshold is considered an executive, administrative or professional employee and thus exempt from overtime pay.

  • For the first time, allows certain bonuses and incentive payments to count toward up to 10 percent of the new salary level.

It's important for you to put a plan in place by the fall.  Some payroll processors require at least two pay periods advanced notice for changes, so the Dec. 1st deadline is closer than you may think!

Click here for FAQs from the DOL that may help you get a handle on the rules.

Click here for additional guidance for employers.

In case you missed the webinar from the National Restaurant Association, you can access a recording of the webinar here. Click here for the webinar slides. The webinar included analysis of the new rule from attorneys Angelo Amador, senior vice president and regulatory counsel at the NRA, and Alex Passantino, partner at Seyfarth Shaw and former Acting Administrator of the U.S. Department of Labor’s Wage and Hour Division.

In related news, the National Restaurant Association recently issued a statement of support for legislation put forward by Congressman Schrader (D-OR) that would allow for a 3 year phase-in period and elimination to indexing in the Department of Labor’s newly implemented overtime rule. Click here for details.

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Wisconsin Restaurant Association • 2801 Fish Hatchery Rd. • Madison, WI 53713 • Tel: 608.270.9950 • Toll Free: 800.589.3211 • FAX: 608.270.9960