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Overtime Regulations Update
June 2016

Hello. And welcome to At the Center.

As many of you are aware, last month the U.S. Department of Labor finalized sweeping changes to the Fair Labor Standards Act, dramatically impacting overtime regulations.

These changes will make millions of formerly overtime-exempt employees eligible for overtime pay or reclassification. In Pennsylvania, the rule will directly impact thousands of employers and an estimated 185,000 employees.

Effective December 1, the new ruling sets the exempt employee salary threshold at $47,476 – more than double the current threshold of $23,660.

While it was widely acknowledged that the salary level needed to be updated and, in that context, efforts at compromise were advanced, the final ruling essentially ignored the input. Input, I am pleased to note, that included comments from close to 100 from Lancaster County employers who responded to our Voter Voice Action Alert.

While the change in salary threshold stands as a defeat to our pro-business efforts, it is worth noting that your voice was heard in other aspects of the proposed change.
First, the duties test will remain the same as it’s always been. And, secondly, the Department’s ruling allows for a 120-day implementation schedule as opposed to the initially-proposed 60-days.

So, for now, employers have until December 1 to sort all this out in terms of its impact in the workplace. And, The Chamber is here to help you.

In partnership with the Economic Development Company of Lancaster County, the Building Industry Association, Association of Builders and Contractors Keystone Chapter, Discover Lancaster and the Non-Profit Resource Network, we will be hosting a free workshop in August to help you determine options, discuss implications and connect you with others to share strategies. Check out our website for more information.

While we were pleased to be able to work with you on the front end of this issue to mitigate impact; we are now compelled to do all we can to make sure you can work toward compliance. As always, let us know how we can help.

Until next time, stay informed, stay engaged and stay with us….At the Center.


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