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Department of Labor Issues Final Overtime Rule

The Automotive Service Association (ASA) reports the U.S. Department of Labor (DOL) has issued a new rule for the nation’s overtime regulation.

According to the DOL, the rule, which takes effect Dec. 1, 2016, will serve to:

* Raise the minimum salary threshold from $23,660 to $47,476 a year, or from $455 to $913 a week to qualify as exempt from overtime requirements

* Raise Americans’ wages by an estimated $12 billion over the next 10 years, with an average increase of $1.2 billion annually

* Extend overtime protections to 4.2 million additional workers who are not currently eligible for overtime under federal law

* Update the salary threshold every three years

* Raise the “highly compensated employee” threshold – from $100,000 to $134,004 – above which only a minimal showing is needed to demonstrate an employee is not eligible for overtime

* Respond to employers’ concerns by making no changes to the “duties test” and allowing bonuses and incentive payments to count toward up to 10 percent of the new salary level

The DOL notes that under the rule, employers will be required to raise the salaries of employees to or above the salary level to maintain their exempt status, pay overtime in addition to the employee’s current salary when necessary or evaluate and realign hours and staff workload.

ASA urges members to review these rule changes relative to their businesses before the rule takes effect. For more information, click here:

The Automotive Service Association is a not-for-profit trade association dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For more information, see www.ASAshop.org or call (817) 514-2900 or visit ASA’s legislative website at www.TakingTheHill.com.

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