Overtime regulations
are changing. We’re
here to help.

Everything you need to know about
the FLSA’s changes—and how it
impacts your business.


What are the FLSA overtime changes?

On May 18th, 2016, the United States Department of Labor (DOL) published details regarding changes to the Fair Labor Standards Act (FLSA) overtime rules. While the job duties component of overtime eligibility will remain the same, the thresholds for the salary tests have changed significantly. The changes will make an estimated 4.2 million additional workers eligible for overtime pay effective on December 1, 2016.*

* A U.S. District Court has temporarily blocked the new overtime rules from going into effect on December 1, 2016. Read the Eye on Washington to learn more.

Who will be newly eligible for overtime pay?

Do the FLSA overtime changes affect me?

The FLSA overtime changes will apply to you if you have any employees who are paid on a salary basis and for whom either of the following statements is true:

Their salary* falls between $23,660 and $47,476 per year and they meet the job duties exemption requirements.

Their salary falls between $100,000 and $134,004 per year and they meet the Highly Compensated Employee (HCE) job duties exemption requirements.

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What do I need to do to comply with
the FLSA overtime changes?

To comply with the FLSA overtime changes, you can either:

Start paying overtime to newly
non-exempt employees.

Increase newly non-exempt
employees' salaries* to the new
proposed minimum.


Which option is best for you?

Here’s a calculator that can help you determine which approach best fits your business and
your labor costs.

Launch the FLSA Overtime Calculator

When do I need to take action
regarding the FLSA overtime changes?

On November 22, 2016, a federal judge in Texas issued an injunction and temporarily blocked changes to the regulations governing the Fair Labor Standards Act (FLSA) set to go into effect on December 1, 2016. The court’s action stops the overtime rule changes from going into effect nationwide, while the court decides the case.

Get legislative updates from ADP.

ADP’s Eye on Washington newsletter keeps you up-to-date with changing information
that may affect your business.

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FLSA Overtime Changes FAQs

What is the FLSA?

What is the FLSA?

The Fair Labor Standards Act (FLSA), also known as the federal Wage and Hour Law, regulates minimum wage, overtime, equal pay, recordkeeping, and child labor. Under the FLSA, employees are classified as either exempt or non-exempt from minimum wage and overtime.

Some states and local jurisdictions have their own wage and hour laws, which may provide greater protection for employees than what is provided under the FLSA.

Does the FLSA apply to all businesses?

Does the FLSA apply to all businesses?

The FLSA applies to virtually all businesses, including public agencies, and regardless of size.

If my employees are paid a salary, does that mean they are exempt from overtime?

If my employees are paid a salary, does that mean they are exempt from overtime?

Not necessarily. To be classified as exempt, employees must meet all of the following requirements:

  • Paid on a salary basis
  • Paid a salary that meets or exceeds the minimum requirement
  • Paid their full salary in any workweek in which they perform work
  • Perform specific job duties that are considered executive, administrative, professional, computer, or outside sales

What are the job duties exemptions for overtime eligibility?

What are the job duties exemptions for overtime eligibility?

These exemptions are sometimes referred to as “white collar” exemptions. They are determined by an employee’s specific job duties. Each of these exemptions have their own set of requirements, which can be found on the Department of Labor’s website here.

Want help managing FLSA overtime changes?

Now is the time to develop a strategy for complying with the FLSA overtime changes and
controlling overtime costs in your organization. ADP is here to help you sort out the final FLSA
changes, stay on top of compliance, protect your bottom line, and more.

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Additional resources on FLSA

*The Final Rule states that employers will be able to use nondiscretionary bonuses and incentive payments (including commissions)
to satisfy up to 10 percent of the standard salary level.