Obama Overtime Law - 2016 DOL Overtime Ruling

NEW Obama Overtime Rule begins December 1, 2016

What you need to know now

Experts say waiting until December to begin tracking your administrative staff hours is a mistake. Get prepared for this new Department of Labor rule by tracking hours now so you can make the decisions that work best for your payroll costs and your staff.

What’s happening?

Earlier this year, President Obama and Secretary Perez announced the final overtime rule, which updated overtime laws across the US.  Effective December 1, 2016, overtime pay regulations will increase the salary threshold for the overtime exemption for white-collar employees. The new Department of Labor Fair Labor Standards Act rule requires employers to compensate administrative staff for hours worked overtime, or above 40 per week. The threshold is expected to rise every three years.

  • Old threshold: $455 per week or $23,600 per year
  • New threshold: $913 per week or $47,476 per year

This rule affects executives, admins and professionals --- staff whose hours you’ve typically never had to track before.

What are your options?

  • You have the choice to pay time and one-half over 40 hours worked per week for employees who are paid less than the threshold amount,
  • OR raise the employee’s salary above the threshold of $47,476,
  • OR limit the hours worked by your salaried employee,
  • OR hire staff to take on the additional workload previously carried by salaried employees (or some combination of these options).

Experts recommend that you:

  • Begin tracking now the number of hours your salaried employees work.
  • Develop an accurate calculation of hours worked per week for each employee.
  • Put a plan in place for your salaried exempt employees making less than $47,476, if you predict they will become eligible for overtime pay.
  • Create an audit trail several months in advance of the new ruling so you can make accurate decisions by December 1, 2016.

How OnTheClock can help:

Adjust easily and seamless by working with OnTheClock to track your admin staff hours. OnTheClock is a full featured, secure cloud-based time clock system. Here’s what it can do for you, right now:

  • Allow time punches from any computer or smart phone, fully controlled by you
  • Provide automatic gross payroll calculation
  • Track holidays, sick days, vacations…and overtime


OnTheClock is a contract-free, low cost time clock solution you can begin to use today.


Important note: For information only, and not intended to replace professional advice. Consult your legal or tax professional. Talk with OnTheClock for help in tracking your employees’ work hours.

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