An Employer’s Cost to Avoid Overtime Obligations Will Increase Dramatically December 1, 2016

Under Federal Law (Fair Labor Standards Act – “FLSA”) employees are entitled to overtime, at the rate of time and one half, for hours worked in excess of 40 in a work week. There are exemptions from the overtime requirement for executive, administrative and professional employees whose duties satisfy the FLSA test for their category PROVIDED the employee receives a weekly salary of at least $455 (Note: Under New York State wage and hour law the weekly salary requirement is $675).
On May 18, 2016 the U.S. Department of Labor announced that the weekly salary requirement for an employee to qualify as exempt from the overtime requirement will be increased to $913 effective December 1, 2016.