UPDATE: On May 18, 2016, the Department of Labor released its final rule on new overtime regulations, raising the salary threshold for exempt status to $47,476. Click here for more information.
The Department of Labor is expected to publish final overtime regulations in July. The proposed update to the Fair Labor Standards Act would increase the salary threshold for exempt status from $23,660 to $47,476. That means any employee making less than $47,476 a year would need to be paid time and a half for all hours worked in excess of 40 hours per week.
While the final publication date has not been confirmed, once the new rule is released, employers will likely only have 90 to 180 days to comply. Don’t wait! Start taking these steps now to prepare:
- Take stock of the potential impact to your company. Review all salaries to see how many exempt employees currently make less than $47,476 per year. Then, review their workload to estimate the potential overtime costs.
- Consider the best options for your situation. Redistributing workloads, adjusting goals or giving raises may be potential options for reducing the impact to your bottom line and maintaining employee morale.
- Ensure job descriptions are up to date. Carefully evaluate your job descriptions and verify that job duties are accurately reflected.
- Review your current overtime policies and procedures. It is essential to have a clear overtime policy. Make sure that any employees who will newly qualify for overtime are familiarized with your overtime policies and procedures as well.
Achilles Group is here to help. If you need assistance planning for the new overtime regulations, call 281-469-1800 to speak to one of our experienced HR professionals.
