Washington Report

Advocacy Updates from Washington D.C.

Department of Labor Updates Overtime Rule


Notice: On November 22, 2016, a U.S. District Court issued a nationwide injunction prohibiting the Department of Labor’s overtime rule from going into effect on December 1, 2016. For more information, read "Federal Overtime Rule Blocked, With Impact on Real Estate" from REALTOR® Magazine.


On May 23, 2016, the Department of Labor (DoL) issued a final rule revising the Fair Labor Standards Act (FLSA or Act).  The final rule updates the standard salary level and total annual compensation requirements to distinguish between overtime-eligible white collar employees and those who may be exempt. The final rule raises the salary threshold to $47,476.  Unless specifically exempted, workers are guaranteed time-and-a-half pay if they work more than 40 hours in any given week if they make less than $47,476, including up to 10 percent of the standard salary requirement with nondiscretionary bonuses, incentive payments, and commissions, provided these forms of compensation are paid at least quarterly.

The rule will become effective on December 1, 2016.

Department of Labor Overtime Rule

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