FLSA Overtime Changes Fact Sheet

by Mammoth Team on May 19, 2016


Sweeping new overtime rules were announced earlier this week, affecting millions of U.S. workers. Among the biggest changes: doubling the salary threshold for employees to qualify as exempt -- or not subject to overtime -- to more than $47,000 a year.

Here's a quick summary of the 5 key things employers should know about the new rules:



  1. The new annual minimum salary threshold will increase to $47,476, from the current level of $23,660. That’s equivalent to $913 a week, up from $455.

  2. The federal government estimates the new rules will grant overtime rights to roughly 4.2 million American workers who are currently excluded.

  3. The new rules call for automatic increases to the exempt salary threshold every three years.

  4. The effective date of the new rules is December 1, meaning that’s the date by when employers need to comply with the overtime changes. 

  5. The new rules do not affect the “duties tests,” that must be passed to qualify for exemption.

Want to learn how to implement the changes into your organization? Download the free, comprehensive FLSA Implementation Fact Book!

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Topics: Compliance, Wage & Hour

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