The new overtime rules—requiring a minimum weekly salary of $913 ($47,476 annually) for most exempt executive, administrative, or professional employees—are scheduled to take effect on December 1.

Remember that both overtime pay (for non-exempt employees) and the salary basis test (for exempt employees) are calculated on a workweek basis, and that each workweek–a fixed and regularly recurring period of seven consecutive 24-hour period–stands alone (29 C.F.R. §§ 778.103-105, § 541.602).  For a non-exempt employee, all hours worked by the employee during the workweek must be totaled in determining overtime eligibility for that workweek.  An exempt employee subject to the salary basis test must receive the full salary for any week in which the employee performs any work, subject to a limited number of exceptions.

The effective date of the new rules falls on a Thursday.  If your workweek begins on an earlier date (for example, Sunday, Nov. 27, or Monday, Nov. 28), you will need to consider your obligations under the workweek rules summarized above–both for employees who are being reclassified to overtime-eligible, and for exempt employees whose salaries are being increased, in light of the new rules.

Please see our earlier posts on the new rules and contact a member of our Wage and Hour group if you have any questions about the new rule.

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Photo of Allan Bloom Allan Bloom

Allan S. Bloom is a nationally recognized trial lawyer and advisor who represents management in a broad range of employment and labor law matters. As a litigator, Allan has successfully defended a number of the world’s leading companies against claims for unpaid wages…

Allan S. Bloom is a nationally recognized trial lawyer and advisor who represents management in a broad range of employment and labor law matters. As a litigator, Allan has successfully defended a number of the world’s leading companies against claims for unpaid wages, employment discrimination, breach of contract and wrongful discharge, both at the trial and appellate court levels as well as in arbitration. He has secured complete defense verdicts for clients in front of juries, as well as injunctions to protect clients’ confidential information and assets.

As the leader of Proskauer’s Wage and Hour Practice Group, Allan has been a strategic partner to a number of Fortune 500 companies to help them avoid, minimize and manage exposure to wage and hour-related risk. Allan’s views on wage and hour issues have been featured in The New York TimesReutersBloomberg and Fortune, among other leading publications. His class-action defense work for clients has saved hundreds of millions of dollars in potential damages.

Allan is regularly called on to advise boards of directors and senior leadership on highly sensitive matters such as executive transitions, internal investigations and strategic workforce planning. He also has particular expertise in the financial services industry, where he has litigated and arbitrated cases, including at FINRA and its predecessors, for more than 20 years.
A prolific author and speaker, Allan was the Editor of the New York State Bar Association’s Labor and Employment Law Journal from 2012 to 2017. He has served as an author, editor and contributor to a number of leading treatises in the field of employment law, including ADR in Employment Law (ABA/Bloomberg BNA, Senior Editor), Employment Discrimination Law (ABA/Bloomberg BNA, Final Proof Editor), Cutting Edge Advances in Resolving Workplace Disputes (Cornell University/CPR, Editor), The Employment Law Review (Law Business Research, U.S. Chapter Author), and The Complete Compliance and Ethics Manual (SCCE, Chapter Author).

Allan is a member of the NYSBA’s House of Delegates, sits on the Executive Committee of the NYSBA’s Labor and Employment Law Section, and is a Fellow of the College of Labor and Employment Lawyers. He has been recognized as a leading practitioner by Chambers since 2011.