Michael Santo, Bechtel & Santo
In spite of objections raised by members of the business community nationwide including this Chamber, the U.S. Department of Labor finalized updated overtime rules in May and all businesses will be expected to comply beginning December 1, 2016. While key provisions are shown below there are still a lot of questions about how to apply the rules and which workers will be subject to overtime. Michael Santo, Bechtel & Santo, will offer a one-hour brown bag session on the rule, Tuesday, August 30th, 12:00 PM in the Chamber briefing room. The session is free but registration is requested in order to prepare sufficient materials. Register online at www.gjchamber.org.
Key Provisions of the Final Rule:
- The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:
- Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
- Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.
Additionally, the Final Rule amends the salary basis test to allow employers to use non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.
If you missed this seminar, click here to view a recording of the session.
Click here to download full version of the Grand Junction Area Chamber of Commerce August 2016 Newsletter.