Hard Work Gets Rewarded with New Department of Labor Overtime Rules

Chalk up a victory for over 4 million overtime workers. The new Department of Labor overtime rules updated regulations to extend overtime compensation to hard-working employees nationwide. Naturally, the update will result in a sizable hike in employees’ pocketbooks and continues to drive home President Obama’s commitment to ensuring all workers are paid for a hard day’s work.

Get more details on the DOL’s Final Rule in the full release from its website.

Provisions of New Department of Labor Overtime Rules

  1. Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region
  2. Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally
  3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.

Here’s to a bright, well-compensated future for hard-working employees willing to go the extra mile! For more news on how workforce rules and regulations are shifting, check out our blog on Alabama’s “Truth in Salary Act.”