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NEWS FLASH: DOL Overtime Changes!

On May 18, 2016, The Department of Labor (DOL) issued a final rule regarding changes to the overtime regulations under the Fair Labor Standards Act (FLSA).  There are 3 key changes that you need to be aware of.

3 Key Changes

  • Salary Level Will Increase.  The standard salary level to meet the salary basis test for exempt status will increase significantly from $455 per week to $913 per week ($47,476 annually for a full-year worker).
  • Changes to Highly Compensated Employees (HCE).  The total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test will rise from $100,000 to $134,004.
  • Automatic Increases to the Salary Level. The salary level (including for highly compensated employees) will automatically update every 3 years.

The effective date for salary level and HCE changes is December 1, 2016.  The automatic increases will take effect on January 1, 2020.  You must prepare now to comply by December 1, 2016.


The Department of Labor has prepared free, educational webinars.  You can register for them here:


General Information on the Overtime Final Rule

Webinar for the Non-Profit Sector

This webinar contains the same information as the general sessions, with additional information that applies to the non-profit sector.

Webinar for State and Local Governments

After registering, you will receive a confirmation email message with additional details.  These webinars are organized and hosted by the DOL, not HR Kinections.

If you have questions about how these changes impact your business, you can reach out to us here at HR Kinections.