Overtime Regulation Update

Presentation regarding the new Overtime Regulations presented by the Goshen Chamber and Yoder, Ainlay, Ulmer, & Buckingham LLP.

The final rule increases the salary threshold under which most employees will be automatically eligible for overtime pay.  The current salary level required for exemption is $455 a week ($23,660 for a full-year employee), which was last updated in 2004, and the new exemption threshold will be $913 a week, or $47,476 per year.
In addition, the change in the salary threshold also includes an automatic adjustment every three years.

The overtime rule leaves intact the current so-called "duties test" that determines whether or not certain employees are eligible for overtime even if they make more than the new $47,476 threshold amount.  To be eligible for this exemption, an employee's job duties must primarily involve executive, administrative, or professional duties as defined by DOL's regulations