Effective 12/1/16 New Minimum Salary Requirement for Exempt Status

On May 18, 2016, the Obama Administration signed the new regulations into law. The new minimum salary that must be paid to employees to qualify as salaried exempt (and not entitled to overtime pay) will increase to $47,476 ($913/weekly). The new $47,476 minimum salary requirement for exempt status will take effect on December 1, 2016. If there are currently employees on salary that you do not currently pay at least $47,476 and for whom you do not wish to increase their pay to this new salary level, these employees must be paid 1.5 for all hours worked after 40 hours, effective December 1, 2016.

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