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Staying on Top of Overtime

By June 14, 2016December 16th, 2022HR, Legal

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

FLSA Overtime Exemption Rule

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.

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