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U.S. Department of Labor changes overtime exemption

Publication date: 
July 2016
Author(s): 
Mike Huber, American MTS
Type of media: 
Article

The U.S. Department of Labor (DOL) recently passed new regulations as part of the Fair Labor Standards Act regarding overtime exemption for salaried employees. These new rules are causing concerns as they contain large increases in the minimum salary requirements along with a mechanism for automatically raising these figures. Some positions that may be most impacted at EASA facilities include office personnel, shop foremen, salesmen, drivers and even company owners.

Topics covered in this article include:

  • Increase in minimum salary
  • Increase in highly compensated employees (HCE) threshold
  • Automatic increases
  • Understanding the Standard Duties Test for salaried employees
  • Relaxed standard rules for HCE
  • Steps to consider to get ahead of the changes