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Legal News in Minnesota

New Federal Overtime Rule is Fast Approaching

A new federal overtime rule goes into effect on December 1, 2016.  The rule raises the Fair Labor Standards Act salary threshold for those white-collar employees who are exempt from overtime from $455/week ($23,660) to $913/week ($47,476.00).  This means that an employee who makes less than $47,476.00 per year must be paid overtime.

There are plenty of options to ensure compliance with this new rule.  For example, an employer can (1) raise the employee’s salary to the threshold to keep from paying overtime; (2) keep the employee’s salary the same but limit the employee’s hours to 40 hours per week; or (3) keep the employee’s salary the same but pay time-and-a-half for overtime work.

Employers have until December 1, 2016, to figure out the best way to comply with the new rule. For more information on the new Federal Overtime rule and how it may apply to you contact Joseph Gangi by calling Farrish Johnson at 507-625-2525.

This webpage contains general information and not legal advice. It is based on Minnesota law in effect at the time of writing. An attorney at Farrish Johnson Law Office, Chtd can advise you about how the law applies to your specific situation.