Three weeks ago, the Department of Labor published its final rule updating the overtime regulations under the Fair Labor Standards Act (FLSA). Whether to classify inside sales reps as exempt or non-exempt remains a very messy issue. For those unfamiliar, non-exempt employees are:
Subject to overtime pay
Entitled to rest and meal breaks
Required to keep time records
By a stroke of luck brilliant strategic planning, I happened to be running research on how companies classify their SDRs and AEs for the purposes of overtime pay.
One hundred fifty-nine companies were kind enough to participate. Let’s first turn to what the new rule means.
What’s in the final rule
What has changed: The salary and compensation levels needed for the Executive, Administrative and Professional exemption will be raised to $47,476 on December 1st, 2016. The total annual compensation requirement for highly compensated employees (HCE) will be raised to $134,004.Read More