New Overtime Rule Effective December 1, 2016

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The U.S. Department of Labor (DOL) has officially set December 1, 2016 as the start date to changes made to the Fair Labor Standards Act (FLSA).  The FLSA is a federal law that establishes minimum wage, overtime pay, record keeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State and local governments.

The new rule change will essentially provide overtime (and comp time) to more employees.  Starting December 1, 2016 the minimum salary for employees not entitled to overtime or comp time is increasing to $913 per week.  Employees earning less than $913 per week will be entitled to overtime or comp timer for every hour worked over 40 each week (or 212 hours per 28 days for firefighters and 171 hours per 28 days for law enforcement).  In addition, the minimum salary for a "highly compensated individual" to be exempt from overtime or comp time will be $13404 per year.  Beginning in January 1, 2020, these minimum salaries will be updated every three years.

So what does this mean for county officials?  County employers have three basic options:

1. Pay overtime or provide comp time for hours worked over 40 in a workweek to employees earning less than $913 per week
2. Increase salaries to at least $913 per week
3. Arrange job duties to limit the workweek to 40 hours (171/212 hours per 28 days for law enforcement and firefighters)

To ensure a smooth transition into this new rule change, county officials can begin to do the things listed in the More Employees Entitled to Overtime Beginning December 1, 2016 article under the "What County Officials Should Do" section.

The DOL will also be conducting webinars that will cover information regarding the overtime rule, and one that particularly deals with state and local governments.  To register click on the links found below.

General Information on the Overtime Final Rule

•  May 26, 2016, 1:00pm - 2:30pm, EST Register
• June 2, 2016, 1:00pm - 2:30pm, EST Register
• June 9, 2016, 1:00pm - 2:30pm, EST Register

 Webinar for State and Local Governments

•  June 8, 2016, 1:00pm - 2:30pm, EST  Register

If you would like more information regarding the new overtime rule please visit the DOL’s Wage and Hour Division website or call 866-4USWAGE (866.487.9243).  Be sure to check out their fact sheets and elaws Advisor for further guidance.