When owning a business, it’s crucial you stay updated on new payroll laws. A new federal overtime regulation is imminent and it can have big ramifications for employers. 

What’s being proposed: The U.S. Department of Labor plants to raise the salary threshold of employees who are considered “exempt” and unable to collect overtime pay. Currently, as mandated by the Fair Labor Standards Act, certain salaried employees are unable to collect overtime pay if the make over $455 per week. The new overtime law will move the threshold to $679 per week.  This is essentially making overtime pay available for people who were never able to receive it before due to the salary constraints. 

Of course, this raises the costs for employers. What does it mean for you, exactly? 

It’s important to note that overtime exemption is not only determined by salary, it’s also determined by the employee’s duties. Employees in managerial positions like project managers and VPs don’t earn overtime. Also employees who are considered to have advanced knowledge in areas of medicine and science are also exempt (e.g. doctors and scientists). 

This law may still take some time before it goes into effect. If it affects you, you should look at your books, and you should consider the help of a payroll service to help you stay aware of what’s going on. Primary Payroll makes paying your employees a breeze. Contact us today to learn how we can help. 


With over 20 years of experience in the industry, we’ve combined the best established processes and latest technology to make your payroll experience with us seamless and reliable. More...


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