On Wednesday, June 22 at 3-4 p.m. ET, the Big “I” will host a free webinar to help agents navigate the ins and outs of a new Department of Labor (DOL) regulation that will require employers to pay overtime to employees who were not previously legally entitled to it.

The DOL overtime rule updates a regulation that exempts certain employees from overtime and minimum wage requirements commonly referred to as the “white-collar” exemptions, and is set to take effect on Dec. 1, 2016.

Under the new rule:

• Employers must either re-classify as non-exempt or raise the salary of any employee who makes less than $47,476 and is currently classified as exempt under the administrative, executive, professional or computer “white-collar” exemptions to the Fair Labor Standards Act (FLSA). The $47,476 threshold is a 100% increase from the current $23,660 threshold.
• Nondiscretionary bonuses and incentive payments, including commissions, may satisfy up to 10% ($4,747.60) of the $47,476 salary threshold.
• Any employee who is classified under the “highly compensated employee” exemption must earn at least $134,004 in total compensation. The $134,004 threshold is a 34% increase from the current $100,000.
• Both the $47,476 and $134,004 thresholds will automatically update every three years, starting in 2020. With the first update, the thresholds are estimated to reach $51,168 and $147,542, respectively.

The free webinar, Overtime Regulation and Employee Classification, will explain how the new rule will specifically impact insurance agencies and their employees, and review relevant portions of the FLSA. Register today!

Jennifer Webb is Big “I” federal government affairs counsel.