From:                              UAC - Georgia Urban Ag Council <> on behalf of UAC - Georgia Urban Ag Council <>

Sent:                               Friday, May 20, 2016 1:36 PM


Subject:                          Dept of Labor Overtime Rule Finalized and H-2B Call to Action


UAC Legislative/Regulatory Alert - May 20, 2016





Important regulatory and legislative information for employers:


  1.  US Department of Labor:  Final Rule updating overtime regulations.  Your company may  be significantly impacted by the new overtime rule.  Starting December 1st employees who make less than $913 a week ($47,476) are entitled to overtime pay for all hours worked over 40 in an administrative workweek (ie no longer considered salaried exempt).
  2. H-2B Appropriations Renewal :  Please request Congress to renew the temporary H-2B relief provided in the Fiscal Year 2016 Consolidated Appropriations Act (P.L. 114-113) to allow small and seasonal businesses to continue to operate next year.

See below for details.  


Practical approaches to dealing with the Overtime Rule 

from  UAC consulting attorney Lynn Stewart,  Schreeder, Wheeler & Flint, LLP will be included in the July/August UAC Magazine.  UAC thanks Ms. Stewart for her diligence in providing this information to UAC members. 


Please contact me for additional information 


Warm regards,

MK sig/green background

Mary Kay Woodworth

Executive Director   




Wage and Hour Division (WHD) - Final Rule: Overtime


Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards Act


On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor's final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. 


Key Provisions of the Final Rule


The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:

  1. Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
  2. Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
  3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.

Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.


The effective date of the final rule is December 1, 2016. The initial increases to the standard salary level (from $455 to $913 per week) and HCE total annual compensation requirement (from $100,000 to $134,004 per year) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.









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Georgia Urban Ag Council, P.O. Box 119, Commerce, GA 30529