We heard you and we took your concerns to Washington D.C. last week. The La Crosse Area Chamber of Commerce argued that proposed thresholds for paying overtime to all employees earning less than $52,000 were too high, too fast, and too impactful. Small businesses and nonprofits particularly expressed concerns of extreme impact.
The good news is your voice had some impact. We succeeded in lowering and lengthening the implementation. The changes finalized today, however, remain significant so we are sharing highlights with you so you can prepare.
OFFICIAL RULING THIS MORNING
- Threshold: Everyone earning less than $47,476/year must be paid overtime for weekly hours totaling more than 40 (exemptions are noted here).
- Auto Increases: This wage threshold will increase every three years based on wage growth over time.
- Date: The final rule becomes effective December 1, 2016.
- Incentive Pay/Bonuses: The rule states bonuses, incentive pay or commissions totaling up to 10% are added to the salary to determine if the threshold is met as long as the extra pay is provided at least quarterly.
- Exceptions: The Department of Labor specifically spells out requirements for: high-education, state and local government, and nonprofits.
The Chamber is organizing a panel of speakers to address your many questions. More to come. To ensure you receive additional information as it becomes available, click on the “sign-up” button at the right.