White House increases overtime eligibility by millions

The US Department of Labor has approved new regulations governing overtime pay for salaried workers.  Effective December 1, 2016 salaried workers making less than $47,476/year ($913/week) will be entitled to time-and-a-half for work that exceeds 40 hours/week.  This is more than a 100% increase from the current threshold of $23,660/year ($455/week).  The DOL plans on updating the salary threshold every three years.

Currently, any employee whose job duties match the DOL’s Duties Test and who make more than $455/week are considered exempt for overtime rules and are not entitled to overtime pay.  While the DOL is not changing any of the job duties requirements to quality for exemption, cleaning business owners will need to comply with the new salary requirement or reclassify workers as hourly by December 1, 2016. 

View the Department of Labor press release.

Tom Stewart and his wife, Janice Stewart, are co-owners of Castle-Keepers, the 1st company to achieve CIMS certification. Tom is a nationally-recognized leader & innovator in the house cleaning industry. He is co-founder and Publisher of  Cleaning Business Today.