New Fair Labor Standards Act (FLSA) overtime rules are prompting employers to reinspect their policies. These new regulations will boost the current threshold that determines whether an employee is exempt from overtime pay. The current threshold sits at $23,660 per year; however, the Department of Labor hopes to increase this exemption level to $50,440 sometime later this year. This would result in full-time employees in the 40th percentile of weekly earnings being eligible for overtime pay. Additionally, the Department of Labor plans to increase the salary threshold on an annual basis, citing changes in inflation and earnings percentiles for full-time salaried employees as the primary markers.
See "New FLSA regs will boost employer payroll costs", Employee Benefit News, May 12, 2016