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New Overtime Rule

July 19, 2016

The new rule from the U.S. Department of Labor affecting overtime for white collar workers goes into effect December 1, 2016. It may have a profound effect on many small businesses and organizations who have salaried employees. Below is a brief overview of the new rule and the resources available to help.

Currently, white collar salaried workers who meet one of the five categories of eligible exemptions: executive, administrative, professional, outside sales and some computer employees, and are also paid $23,660 a year ($455 per week) or more, are exempt from overtime pay. The new rule effective December 1st raises the required level of pay to $47,476 per year ($913 per week) to remain exempt from overtime for those salaried workers meeting one of the categories of exemptions just mentioned.

Here are some available resources to help you deal with this new rule taking effect December 1st. First, the guest speaker for the San Angelo Chamber of Commerce‚Äôs August 9th luncheon is local employment law attorney Jon Mark Hogg. He will speak on this topic and provide an overview of the rule and the implications it will have for businesses and organizations. You can register for the event at 325-655-4136 or Second, the Concho Valley Workforce Solutions or Concho Valley Workforce Development Board have representatives that can work with employers on this issue. They can be reached at 325-655-2005 or 

Third, the ASU Small Business Development Center regularly works with existing small businesses on operational and financial issues. This new rule may affect how the work of the business gets done. In addition, it may affect the finances of the business from decisions to increase the salaries of affected salaried employees or by paying overtime hours over 40. The SBDC staff can work with you on creating financial projections so you can see the financial effect on your business. In addition, we can brainstorm the possible operational issues affecting business because of the new rule. Our advising services are confidential and at no-charge. Contact us at or 325-942-2098.

Fourth, some of the larger local accounting firms may have HR professionals on staff who can assist. Also, other local attorneys and local HR consultants may be able to help you understand the new rule and how it applies to your business or organization. Finally, the U.S. Department of Labor (DOL) has a website that does a good job of completely explaining the rule. See Search for the new overtime rule. The information for this article came from the DOL website.