Legal Insider: DOL Expands Annual Salary Overtime Threshold

Berry&BerryRevised

This is a sponsored column by attorneys John Berry and Kimberly Berry of Berry & Berry, PLLC, an employment and labor law firm located in Plaza America that specializes in federal employee, security clearance, retirement, and private sector employee matters.

On May 18, 2016, the Department of Labor (DOL) issued a final rule making millions of middle-class workers eligible for overtime pay for the first time.

The new DOL rule, which was last updated more than 10 years ago, is set to go into effect on Dec. 1, 2016. A lot of things have changed in the time since the last revisions with respect to wages and inflation. By far, the most significant change in the new regulation is that the DOL has doubled the annual salary threshold that determines overtime pay eligibility.

Prior to the new rule, workers who earned more than $23,660 a year were not eligible for overtime pay, which is time and one-half of a worker’s regular hourly rate of pay, if they worked beyond 40 hours in a workweek and performed certain executive, professional, or administrative duties. The new DOL rule leaves the existing duties test in place but increases the annual salary threshold to $47,476. It is estimated that the new regulation will extend overtime pay to over four million workers around the country by next year.

In addition, the new annual salary threshold of $47,476 is expected to rise to more than $51,000, based on wage growth, when the first scheduled update occurs on Jan. 1, 2020. The DOL plans to automatically increase the annual salary threshold every three years after implementation.

The move by DOL has received significant press coverage and many employers are working toward implementing the new rule. Eligible workers will likely be provided more information from their employers before the new rule goes into effect.

We represent employees in employment matters. If you need assistance with a federal retirement or an employment issue, please contact our office at (703) 668-0070 or at www.berrylegal.com to schedule a consultation. Please also visit and like us on Facebook at www.facebook.com/BerryBerryPllc.

Recent Stories

Herndon’s indoor tennis court center is closed early for the season (courtesy Town of Herndon) The Town of Herndon’s indoor tennis center has closed early for the season, the Herndon…

A Fairfax County police officer with a radar gun (via FCPD) Fairfax County police officers issued almost 5,700 citations and warnings during the first phase of their year-long “Road Shark”…

Aging Well: Self-care gets personal

This biweekly column is sponsored by The Mather in Tysons, Virginia, a forward-thinking Life Plan Community for those 62 and better. Gone are the days when spas were simply places where…

Reston’s annual Founder’s Day returns next month (courtesy Reston Museum) Reston founder Bob Simon Jr. will once again be the focus of celebrations next month during the annual Founder’s Day…

×

Subscribe to our mailing list