BGH Blog

Upcoming Changes to Overtime Rules

There are upcoming changes to overtime regulations as reported by the Fair Labor Standards Act (FLSA), effective December 1, 2016, which update the rules for determining whether salaried employees are subject to or exempt from the FLSA’s overtime pay protections. These regulations apply to most employers (referred to as covered employers), including employers with gross sales of $500,000 or more. For not for profit organizations, gross sales refer to activities with a business purpose. Employers with annual gross sales under $500,000 may still have covered employees subject to the new overtime rules if those employees are individually engaged in interstate commerce. The definition of interstate commerce is quite broad, examples of which include the shipment or receipt of goods across state lines or regular communication across state lines via telephone or mail.