The Food Institute Blog

The Food Institute Blog

Understanding the New Overtime Rules
Posted on June 14, 2016 by Jennette Zitelli

The Department of Labor released the final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. Starting on Dec. 1, 2016, the initial increases to the standard salary level and HCE total annual compensation requirement will go into effect. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.

The Final Rule focuses primarily on updating the salary and compensation levels needed for executive, administrative and professional workers to be exempt. Specifically, it:

  1. 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);
  2. 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
  3. 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 nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the new standard salary level.

So what does all of that mean for you and your business?

The Food Institute and OFW Law are prepared to help you make sense of this new regulation. Join us on June 29, 2016 at 12 pm ET for a comprehensive webinar, "Understanding Your Obligations Under the New DOL Overtime Rules." Speaker Elliot Belilos of OFW Law, will help businesses large and small make sure they are prepared to comply with these new regulations.

The webinar will include:

  • An overview of the current overtime regulations, including common pitfalls
  • How the latest revisions impact your obligations
  • Key implementation dates and steps you should take toward compliance.

Who should join the webinar? Company and trade association human resource personnel and legal counsel who want a better understanding of their legal obligations under the Fair Labor Standards Act and DOL's new overtime rules.

Elliot has over 25 years of experience representing companies and trade associations on employment matters. OFW law represents companies and trade associations in food, agriculture and consumer product industries.

If you are interested in this webinar but cannot attend the live event, a recording will be sent to all registrants once the webinar has concluded.

Posted in OFW Law   Overtime   Retail   Foodservice   Washington  


About the Author

Jennette Rowan
Product Manager
The Food Institute

Jennette writes and edits the Food Institute’s annual publications, such as Food Business Mergers & Acquisitions, The Food Industry Review and The Almanac of the Canning, Freezing, Preserving Industries.  She also handles marketing and promotions for books, seminars and the monthly webinar series. Additionally, she writes for the daily news update, Today in Food, and periodically contributes to the weekly Food Institute Report. She has a background in non-profit and environmental marketing, programming and writing, and joined the Food Institute in 2013 with a degree in Communication Studies from Rowan University.


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