NLBMDA Issues Guidance on Department of Labor’s New Overtime Rule

Monday, June 13, 2016

On May 18, the Department of Labor issued its new overtime rule despite vigorous opposition from the business sector. NLBMDA, among many other groups, filed comments against the proposed rule, citing the negative impacts on employers and employees alike. See NLBMDA Disappointed with Final DOL Overtime Rule; Vows to Continue to Work Against Implementation of Poorly Constructed Policy (May 18, 2016). The new rule increases the threshold salary levels for employees exempt from overtime pay. This includes a 100% increase in the standard white collar exemption as well as a 34% increase for highly compensated employees. The rule takes effect December 1, 2016 and both salary thresholds will be updated every three years, with the first update scheduled January 1, 2020. Employers are able to count certain non-discretionary incentive bonuses, including commissions, towards 10% of the new standard threshold, so long as they are paid at least quarterly, and employers may make up any shortfall at the end of each quarter to keep an employee within an exemption. Notably, the new rule does not change the various duties tests and numerous exemptions, including the exemption for Outside Sales. See NLBMDA Regulatory Guidance: New Department of Labor Overtime Rule. This and other material may also be found at on the NLBMDA Regulatory Affairs Webpage under Labor and Employment. NLBMDA plans a webinar for members on the new rule and urges dealers to take action on the DOL Overtime Rule by going to NLBMDA's Legislative Action Center and sending a letter to their Representative and Senators asking for support and passage of the Protecting Workplace Advancement and Opportunity Act (H.R. 4773).

NLBMDA 6/13/2016

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