Changes to Federal Overtime Regulations

The Division of Wage and Hour Compliance of the New Jersey Department of Labor and Workforce Development has issued a notice advising employers of the impact of new federal overtime regulations regarding white collar exemptions that go into effect on December 1, 2016.

The new regulations increase the minimum salary that employers must pay administrative, executive, and professional employees in order for them to remain exempt (i.e., not entitled to overtime). Specifically, the minimum salary is being raised from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). In other words, as of December 1, 2016, administrative, executive, and professional employees who make less than $47,476 per year will no longer be exempt and must be paid overtime.

Since New Jersey has adopted these regulations, the salary test will increase according to the above schedule.

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