The US Department recently released the final new Overtime Rule which will come into effect on December 1, 2016. (https://www.dol.gov/whd/overtime/final2016/)
There are three main changes that will be issued:
- Increases to the salary threshold for salary workers increases from $455 to $913 per week. ($47,476 per year).
- Increases to annual compensation level for “highly compensated” from $100,000 per year to $134,004.
- Automatically updates to salary and compensation level every three years.
These changes, especially the salary threshold increase are estimated to affect over four million workers within the first year of implementation. What does that mean for your company?
Challenges Employers Are Facing
- How will you communicate the message to employees affected and how will you address their concerns?
- What timekeeping, reporting systems and processes will you implement to ensure accuracy?
- How will you address budgetary changes such as additional overtime cost and adjustments to hourly wages?
- How will you control overtime cost and what strategies, policies, and employee education do you need to implement?
- How will you pay employees for telecommuting and travel hours?
- How will you manage and track employees working after hours on their cell phones answering calls and responding to emails?
- What policies do you need to change or create to address the areas described above?
Understanding your options and developing a strategy for addressing these challenges are essential. Premier HR Solutions provides consulting services to help you navigate through these changes and select the best practice that suits your company’s culture. Contact Scholley Bubenik at firstname.lastname@example.org for additional information. www.premierhrsolutions.net