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The U.S. House of Representatives voted on September 28 to delay the effective date of the Department of Labor rule to increase the minimum salary for exempt staff under the Fair Labor Standards Act from December 1, 2016 to June 1, 2017. This delay would allow employers more time to prepare for the change.

The new rule increases the exemption amount from $23,660 to $47,476 per year. Business and other groups argue that the rule could force demotions of salaried workers to hourly positions and create more part-time jobs.

The White House has indicated that President Barack Obama would veto legislation delaying the rule.

For more information, see the following articles:

Opposition to the measure in the Senate is likely, and employers should continue to prepare for the new pay rule.

Contact KMA for additional information and assistance in complying!