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.
NAR’s Legal Affairs Department has developed new guidance to assist with members’ businesses that may be affected by the Department of Labor’s (DOL) new overtime rule. Effective December 1, 2016, DOL revised the requirements under the Fair Labor Standards Act (FLSA) regarding the minimum salary threshold for employees to be considered exempt from overtime. The final rule raises the annual salary threshold to $47,476, up significantly from $23,660, and will increase automatically every three years, starting in 2020. 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.
For more information, see NAR’s Guidance on Overtime Rule.
Window to the Law video: New DOL Overtime Rules