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Salary threshold guaranteeing overtime pay doubled

May 19, 2016

By Jennifer Garvin

Washington — The U.S. Department of Labor finalized a rule May 18 that expands the number of full-time workers eligible for overtime pay.

The final rule, which takes effect Dec. 1, doubles the salary threshold — from $23,660 to $47,476 per year — under which most salaried workers are guaranteed overtime, according to a White House release. The rule does not affect hourly workers.

According to the White House, the rule will also:

  • Extend overtime protections to 4.2 million additional workers not currently eligible for overtime under federal law.  
  • Update the salary threshold every three years, ensuring that it "is maintained at the 40th percentile of full-time salaried workers in the lowest income region of the country."
  • Allow bonuses and incentive payments to count toward up to 10 percent of the new salary level — as long as the bonuses are provided on at least a quarterly basis.  
The Department of Labor said it received more than 270,000 public comments on the rule, including the Association's September 2015 letter.

Responses in 2015 from the ADA's volunteer leaders suggest around 39 percent of all dental offices have at least one employee in a salaried position. For more information, the Department of Labor has put together the paper, Guidance for Private Employers on Changes to the White Collar Exemptions in the Overtime Final Rule.