6/21/2017 FinalRule:OvertimeWageandHourDivision(WHD)U.S.

DepartmentofLabor

UnitedStatesDepartmentofLabor
WageandHourDivision
WageandHourDivision(WHD)

ImportantinformationregardingrecentovertimelitigationintheU.S.DistrictCourtofEasternDistrictof
Texas

FinalRule:Overtime
DefiningandDelimitingtheExemptionsforExecutive,Administrative,Professional,
OutsideSalesandComputerEmployeesundertheFairLaborStandardsAct
TheDepartmentpublishedaNoticeofProposedRulemaking(NPRM)intheFederalRegisteronJuly6,2015(80
FR38515)andinvitedinterestedpartiestosubmitwrittencommentsontheproposedruleat
www.regulations.govbySeptember4,2015.TheDepartmentreceivedover270,000commentsinresponsetothe
NPRMfromavarietyofinterestedstakeholders.ThefeedbacktheDepartmentreceivedhelpedshapetheFinal
Rule.

KeyProvisionsoftheFinalRule
TheFinalRulefocusesprimarilyonupdatingthesalaryandcompensationlevelsneededforExecutive,
AdministrativeandProfessionalworkerstobeexempt.Specifically,theFinalRule:

1.Setsthestandardsalarylevelatthe40thpercentileofearningsoffulltimesalariedworkersinthelowest
wageCensusRegion,currentlytheSouth($913perweek$47,476annuallyforafullyearworker)

2.Setsthetotalannualcompensationrequirementforhighlycompensatedemployees(HCE)subjecttoa
minimaldutiestesttotheannualequivalentofthe90thpercentileoffulltimesalariedworkersnationally
($134,004)and

3.Establishesamechanismforautomaticallyupdatingthesalaryandcompensationlevelseverythreeyears
tomaintainthelevelsattheabovepercentilesandtoensurethattheycontinuetoprovideusefuland
effectivetestsforexemption.

Additionally,theFinalRuleamendsthesalarybasistesttoallowemployerstousenondiscretionarybonusesand
incentivepayments(includingcommissions)tosatisfyupto10percentofthenewstandardsalarylevel.

TheeffectivedateofthefinalruleisDecember1,2016.Theinitialincreasestothestandardsalarylevel
(from$455to$913perweek)andHCEtotalannualcompensationrequirement(from$100,000to$134,004per
year)willbeeffectiveonthatdate.Futureautomaticupdatestothosethresholdswilloccureverythreeyears,
beginningonJanuary1,2020.

InformationalWebinarsontheOvertimeFinalRule

QuestionsandAnswersfromtheGeneralInformationOvertimeWebinars

QuestionsandAnswersfromtheOvertimeWebinarfortheNonProfitSector

AdditionalInformation
FinalRule

https://www.dol.gov/whd/overtime/final2016/ 1/2
6/21/2017 FinalRule:OvertimeWageandHourDivision(WHD)U.S.DepartmentofLabor

QuestionsandAnswers

FactSheet:OvertimeFinalRule(PDF)

GuidanceforEmployers
FactSheet:TreatmentofBonusesforExemptWhiteCollarEmployees

GeneralGuidanceforPrivateEmployers

SmallBusinessGuidetoWhiteCollarExemptions

GuidanceforNonProfits
FactSheet

NonProfitGuidance

GuidanceforHigherEducation
FactSheet

GuidanceforHigherEducationEmployers

GuidanceforStatesandLocalGovernments
FactSheet

SummaryoftheEconomicImpactStudy

ComparisonTable:CurrentRegulations,ProposedRule,andFinalRule

StatebyStateBreakdownsofWorkersAffectedbyDOLsFinalOvertimeRegulation

DOLOvertimePage

NonEnforcementpolicyforprovidersofMedicaidfundedservicesforindividualswithintellectualor
developmentaldisabilitiesinresidentialhomesandfacilitieswith15orfewerbeds

https://www.dol.gov/whd/overtime/final2016/ 2/2