Are You Impacted by The New Federal Overtime Rule?

"Your smile is your logo, your personality is your business card, how you leave others feeling after having an experience with you becomes your trademark."

- Jay Danzi

Business Consulting, Healthcare Consulting

As you are probably aware, the Department of Labor released its final rule on May 18, 2016, revising the overtime regulations of the Fair Labor Standards Act [FLSA] that date back to 1938!

What might this mean for you?

If you pay any employees on an exempt [from overtime pay] basis, the threshold has been raised from $23,660 to $47,476 – that’s right, over a 100% increase! This change in the federal law requires employers to pay workers who make up to this annual amount [$913/week] overtime pay. So, if you have an employee paid on an exempt [salary] basis earning less $47,476 per year, they will now be eligible for overtime pay.

If you pay an employee on an hourly basis, called “nonexempt” in legal terms, and pay overtime at the rate of 1.5 times the hourly rate for any hours worked over a seven-day work week [you can read the WA State Department of Labor and Industries information and links here – Workplace Rights on Wages and OT].

What’s the deadline to comply and next steps?

The established compliance date for all employers is December 1, 2016.

If you need any guidance or assistance to determine if you are paying your employees properly, call Salsbury & Co. at (503) 850-8411 or contact your accountant.


April Salsbury, MBA is a strategist, an analyst, an operational guru, a recognized leader and C-suite global healthcare executive with drive and focus for competitive markets. Co-host of The Business Forum Show and regular contributor to various business journals, she possess multi-functional and multi-national competencies with more than 15 years experience in business and healthcare. Her expertise is in invigorating revenue growth and infusing value of lean practices in growing companies through improvements to cash flow and operations management.

Fueling revenue, growth and profit, Salsbury & Co. is a consultancy firm focused on helping businesses and healthcare organizations achieve excellency. Our specialists have executive experience combined with deep functional expertise to provide our clients with services that drive real impact and results.

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