Mandatory Rules for Overtime Pay Have Changed

There has been an important update on the new DOL Overtime Rules that were set to go into effect on December 1st. Yesterday a U.S. District Judge issued an injunction against the new rules. This means that the new overtime rules will not go into effect on December 1st. The injunction stops implementation or enforcement of the new  rules until further action is taken by the Department of Labor, most likely through appealing the ruling. At this point it is uncertain when, if ever, the new rules will go into effect.

We will keep you apprised of any new developments. Please check our website as well for any updates. Contact us if you have any questions about how this will affect your business.

On May 18, 2016, President Obama finalized the Department of Labor’s new rule updating regulations regarding overtime compensation for salaried employees. Starting December 1, 2016 any salaried employee paid under $47,476 must be paid overtime for working more than 40 hours in a week. Non-discretionary bonuses and incentive payments can be included, up to 10%, in the salary calculation. Please contact us if you have any questions or see the link below for more information from the Department of Labor.

 

https://www.dol.gov/whd/overtime/final2016/index.htm

 

If you have additional questions about this post or any other, please contact us directly at 928-778-0079.

Schutte & Hilgendorf is a leading Prescott CPA firm, offering superior client service to individuals, small businesses, non-profit organizations, and homeowners associations.

Our services include accounting, bookkeeping, audit, review, tax return preparation, tax planning, payroll and QuickBooks consulting. We are located in Prescott and serve all of Yavapai County, and Northern Arizona.


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