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May 19, 2016

Stroock Special Bulletin

By: Howard S. Lavin, Elizabeth E. DiMichele

This week, the U.S. Department of Labor (“DOL”) issued new regulations that will significantly impact which employees are exempt from the minimum wage and overtime pay requirements of the federal Fair Labor Standards Act (“FLSA”).  The FLSA provides that certain employees are exempt from the FLSA’s minimum wage and overtime pay obligations and the DOL’s regulations provide tests to determine whether an employee is exempt from these requirements. 

This Stroock Special Bulletin provides an overview of the new regulations, which will double the annual salary threshold for the overtime exemption to $47,476.  The salary level will then be adjusted every three years in accordance with wage growth.  The new regulations will become effective on December 1, 2016.

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