Time-Limited Non-Enforcement Exception to FLSA New Rules


As you are by now aware the Department of Labor’s Final Rule updates the salary level required for exemption from overtime. These changes go into effect December 1, 2016 and the result is that millions of employees will have to be reclassified as non-exempt.

The salary threshold change sets the standard salary level at $913 per week or $47,476 annually for a full-year worker.

However, the Department of Labor has issued one time-limited non-enforcement exception to be aware of. For providers of Medicaid-Funded services for individuals with intellectual or development disabilities in residential homes and facilities with fifteen or fewer beds, the Department of Labor will not enforce the update salary thresholds until March 17, 2019 against these provider employers.

If you have questions about employment law or other civil litigation issues, please call Tracy Stroud at 252-321-2020.