“The Department of Labor’s new overtime rules take effect December 1, 2016, and employers across the country are carefully reviewing and modifying their compensation and payroll practices in anticipation. As part of this preparation, employers must consider whether and how any changes to their compensation structures will affect their employee benefit plans. This post examines some of the employee benefits issues that employers should be considering as the December 1 deadline approaches.
In a nutshell, the new overtime rules increase the salary levels at which executive, administrative, and professional workers may be considered “exempt” from overtime pay when a work week exceeds 40 hours. Initially, the standard salary level will increase from $455 to $913 per week (up to 10% of which may be met with nondiscretionary incentive compensation) and the total annual compensation requirement for highly compensated employee exemption will increase from $100,000 to $134,004 per year. In addition to these initial compensation level bumps, additional upward adjustments are scheduled to occur every three years thereafter.”
Download this white paper to continue reading …
Patricia A. Moran is Of Counsel with Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. She counsels clients on a variety of employee benefits and compensation matters. Notably, Patricia represents clients in a board variety of health and welfare plan matters, including the Affordable Care Act’s employer and insurance mandates, the Massachusetts “Fair Share” employer mandate, COBRA, HIPAA, wellness, and mental health parity.
Thank You!
Download White PaperMore Program Information
