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The Wagner Law Group

The Wagner Law Group, A Professional Corporation, is a nationally recognized ERISA & employee benefits, estate planning, employment, labor & human resources practice. 


Established in 1996, The Wagner Law Group has 22 attorneys engaged exclusively in employee benefits, estate planning and employment law. Six of our attorneys are AV rated by Martindale-Hubbell as having very high to preeminent legal abilities and ethical standards. The firm is among the largest ERISA boutiques in the country. Our practice is national in scope, with clients in more than 40 states and several foreign countries.





Contact Info

The Wagner Law Group


  Integrity | Excellence



Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110

Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418



Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 


San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104


St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
100 South 4th Street, Suite 550
St. Louis, MO  63102 







May 24, 2016


 Employment Law Alert




DOL Issues New FLSA Overtime Pay Regulations 




The DOL has released final regulations that update the Fair Labor Standards Act's ("FLSA's") overtime pay requirements. In particular, the final regulations, which are slated to take effect on December 1, 2016, focus primarily on updating the salary and compensation levels needed for executive, administrative and professional workers to be exempt from the FLSA's overtime pay requirements.


Background. In general, employees covered by the FLSA must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. However, FLSA provides that salaried employees who currently make more than $23,660 per year (i.e., the FLSA salary level threshold) and whose job duties primarily involve executive, administrative, or professional duties are exempt from the overtime pay requirements. Highly compensated employees ("HCEs") whose salary exceeds a certain threshold and who pass a minimal duties test may also qualify for the FLSA's overtime pay exemption.


Final Regulations. Highlights from the final regulations are as follows:


Increase the FLSA salary level threshold. The final regulations increase the FLS salary level threshold from $23,660 to $47,476 per year, or $913.00, weekly. It is estimated that an additional 4 million workers will become eligible for overtime pay as a result of the increase.


Increase the HCE salary level threshold. The final regulations increase the total annual compensation requirement for the FLSA's HCE exemption to apply from $100,000 to $134,004. HCEs must continue to receive at least the same weekly salary rate (which is now $913) as other exempt workers, as well as meet the less stringent duties test.


FLSA salary thresholds now indexed. The final regulations establish a mechanism for automatically updating the salary and compensation levels every three years to ensure that they provide useful and effective tests for exemption.


FLSA duties tests remain intact. The final regulations do not revise the FLSA's duties tests for executive, administrative and professional, computer or outside sales employees.  


Nondiscretionary bonus and incentive payments. The final regulations authorize employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the salary level test. To credit such payments towards the salary threshold test, the payments must be made no less frequently than quarterly.


Where an employee does not earn enough in bonuses in a quarter to retain exempt status, the final regulations permit employers to make a "catch-up" payment at the end of the quarter. The employer has one quarter in which to make up for the shortfall, and such payment will only count towards the prior quarter's salary amount. Where an employer decides not to make a catch-up payment, the employee would be entitled to receive overtime pay for any overtime hours worked during that quarter.


Takeaway for Employers. It is critically important for employers to understand the FLSA overtime pay exemptions and its impact on their budget, as there can be serious financial consequences for employers who violate the FLSA's overtime pay requirements. For assistance with meeting the FLSA's overtime pay requirements or representation concerning a DOL Wage and Hour audit, please contact one of The Wagner Law Group's employment law attorneys.


The final regulations are available at: https://www.gpo.gov/fdsys/pkg/FR-2016-05-23/pdf/2016-11754.pdf





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This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.