​The Dept. of Labor recently updated the salary requirements of employees exempt from required overtime pay in a move that will have a significant impact on many independent agencies and their business clients. Employers have until Dec. 1, 2016 to comply.

In response our national association prepared a Q&A summarizing the rule changes and providing information specific to insurance agencie. The Big “I” will also be providing a free member webinar on the rule changes at the end of the month.​​

In short, under the rule:

• For any employee who is classified as exempt (does not require overtime pay) under the administrative, executive, professional or computer “white-collar” exemptions and makes less than $47,476, employers must either re-classify them as non-exempt (which would mean they require overtime pay) or raise their salary over the threshold. The $47,476 threshold is a 100 percent increase from the current $23,660.
  
  
• Nondiscretionary bonuses and incentive payments, including commissions, can satisfy up to 10 percent of the $47,476 salary threshold.
  
  
• Any employee who is properly classified under the “highly compensated employee” exemption must earn at least $134,004 in total compensation. The $134,004 threshold is a 34 percent increase from the current $100,000.
  
  
• Starting in 2020, both the $47,476 and $134,004 thresholds will be automatically updated every three years. Thresholds are expected to reach $51,168 and $147,524, respectively.
  

View/download DOL Overtime Rule Q&A​