In late August, updates to the overtime provisions of the Fair Labor Standards Act (“FLSA”) went into effect. The new rules are not drastic, but you should be aware of the changes to ensure compliance. The FLSA’s new overtime regulations modernize the salary levels and tests used to determine whether an employee is exempt or nonexempt from the FLSA. For example, under the old regulations, employees earning $8,060 annually ($155 weekly) automatically qualified for overtime benefits and were classified as nonexempt. Now, the final rules state that employees earning less than $23,660 annually ($455 weekly) automatically qualify for overtime pay. Also, under the new regulations, employees are automatically exempt and are not entitled to overtime pay if they make more than $100,000 annually. The new regulations also clarify guidelines used to determine whether an employee is exempt. Given the recent change, many employers are taking this time to review their employee classifications to ensure that they are properly compensating their employees under the FLSA. If there are employees at your company who are classified as exempt, now is a good time to assess whether they are properly classified. If you need any help with evaluating your company’s exempt/nonexempt classifications, just let me know. Please find attached a summary of the new regulations for your review. If you have any questions on the new regulations, please contact me anytime.