On December 1, 2016, the new US DOL Overtime Rule will officially go in effect. This new rule determines which employees are exempt from overtime. Employers will not have to pay overtime to exempt employees. If an employee is non-exempt, employers need to pay overtime for actual hours worked in excess of 40 hours in a single work week. The FLSA (Fair Labor Standards Act) defines which jobs may be exempt from the overtime penalty depending on minimum salary and duties performed. Exemption categories include both a minimum salary threshold, and a duties test. Jobs will have to meet both standards to qualify for exemption.
Feeling overwhelmed? We don’t blame you. Where do you begin? How do you prepare?
Organization and communication are a major factor in businesses making the shift to compliance as painless as possible.
Below are 3 key steps in preparing for the upcoming deadline.
- Conduct an internal audit to identify positions and employees potentially affected.
In recent research conducted by Paychex found that one out of five employers were not aware of the final rule, and 55% did not think the new rule applied to them.
- Educate your employees on time keeping and tracking overtime.
Some employees might still receive a salary but are now required to log their worked hours. Set up training on proper time recording practices.
- Develop a communication plan.
Talk to your employees, explain the new law and guidelines. Make them aware of benefit changes, if any, due to the necessary change in FLSA status from exempt to non-exempt. Misclassifications can cause challenges and serious financial consequences.
In our upcoming 2016 Triad Employment Law Update Conference in Greensboro, North Carolina, lead attorneys from Constangy, Brooks, Smith & Prophete, LLP and CAI’s HR experts will provide registrants with key information about current and proposed changes in state and federal employment law. Building the proper infrastructure to protect your business and effectively navigate the Department of Labor’s new overtime rules and related regulations is critical to every company’s success. One of the concurrent breakout sessions at the 2016 Triad Employment Law Update Conference will focus on protecting your business and cover the shrinking white collar exemptions, interns, joint employers, postliminary duties and the DOL’s approach to enforcing these new standards.
Want to learn more about the conference and who should attend visit https://www.capital.org/triadlaw.
Every workplace has questions that need to be answered, and the sooner the better. Contact CAI’s Advice & Resolution team today!