Effect of 2016 Federal Overtime Rule Changes on Maine Employers

Earlier this year, President Obama announced the Department of Labors Final RulingåÊregarding overtime regulations, which becomes effective December 1, 2016. It is projected that the resulting changes in the law will provide over 4 million additional workers with overtime pay nationwide within the first year of implementation.

Under the new rules, salaried workers are entitled to overtime pay (time-and-a-half after 40 hours a week) if their annual income is less than $47,476 — more than double the current threshold annual income of $23,660. Even a worker who earns $47,476 or more annually may be entitled to overtime pay for time worked over 40 hours per week if the employees duties do not meet the duties test” for exempt status. Any business operating in the State of Maine with one or more employee will be subject to the new rules