May 18, 2016
Two posts ago, I discussed the new Department of Labor overtime exemption changes. Well, folks, we have a decision. Released this morning, the DOL provided their final rule revising the Fair Labor Standards Act.
A few things that are mentioned under the final rule:
- The Annual Salary threshold for exempt positions will be raised from $23,660 to $47,476 per year (weekly that is $913, up from $455). Basic math tells me that is more than double. Employees who earn less than that must be paid overtime for hours over 40 for the week.
- Highly Compensated Employees, who are generally considered exempt, also got a bump in their salary threshold: $100,000 to $134,004.
- No changes in the duties test.
- Rule takes effect on December 1, 2016.
The takeaway? PREPARE NOW. Audit all your exempt employees. Are they truly exempt? And what duty classification do they fall under? Do they meet the NEW minimum salary threshold? If they are reclassified as non-exempt, will they work overtime? What benefits (if any) do we need to reconsider? Do you even want to deal with how to figure all this out?
Call Solution Services today. Let us do the digging and analyzing for you. Together we can come up with a solution (hence the name) that will work for your organization and allow for compliance in all areas of Human Resources.