As we indicated in last month’s newsletter, the U.S. Department of Labor (DOL) finalized their new overtime policy known as the “white-collar exemption.” This is a significant change to overtime pay exemptions, increasing the salary of “exempt” employees to $47,476 from $23,660, meaning if an employee makes less than $47,476 annually, they are now entitled to overtime pay.
Employers must comply with these updated regulations by December 1, 2016. That gives you a little more than six months to prepare. Here are a few things companies can do now:
- Identify exempt positions where employees earn less than $47,476
- Decide which positions you’ll increase the salaries to above $47,476
- For employees that will be reclassified, determine:
- What tasks they perform on a weekly basis as well as how many hours they usually work
- What duties can be redistributed or eliminated
- If an entire function can be outsourced
MarathonHR will be working with our clients over the next few months to review compensation and analyze data as a result of these changes. For more information, please refer to “What HR Professionals Need to Know” published by the Society for Human Resource Management (SHRM) and call us at 678-208-2802.