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New Overtime Salary Threshold Will Become Effective December 1, 2016

The US Department of Labor has issued new overtime rules.  Effective December 1, 2016, most American workers who earn less than $913 per week ($47,476 per year) will be eligible for overtime pay (1.5 times regular hourly pay) when they work more than 40 hours in a week.

Key provisions of the rule are as follows:

Because some of the analysis of the new overtime rules can be complex, and the penalty for an error can be severe, counsel should be consulted before a determination is made that an employee is not eligible for overtime pay under the new rules.

The analysis set forth in this article is provided for general understanding only and should not be considered legal advice.  Counsel should be consulted regarding any specific legal issues.