The U.S. Department of Labor (DOL) is close to making a final decision regarding salary levels eligible for overtime pay exemptions. The anticipated outcome is expected to more than double the current annual exemption level of $23,660 to somewhere between $47,000 and $50,000. This change is expected to impact many people including executives, administrators and professionals. For this reason, the new policy is often referred to as the “white-collar exemption.”
Employees newly classified as nonexempt will need to be trained to track all working hours in order to be paid for every hour worked over 40 each work week. Employers will need to pay careful attention to reclassified workers putting in “off-the-clock” time because they aren’t used to signing in and out as a nonexempt employee.
Employers should view this as an opportunity to determine if salaried employees should be hourly based on the new guidelines and reclassify staff as appropriate. For more information about the proposed overtime rule, please visit https://www.dol.gov/whd/overtime/NPRM2015/.