Preparing for the new overtime rules – August 2016 update
As we reported on May 19, 2016, the new overtime rules go into effect December 1, 2016 [only 3 months away!]. This means that employers will need to ensure that employees who make below the annual salary threshold of $47,476 are classified as non-exempt and paid overtime.
- Reviewing which of their employees are classified as exempt from overtime.
- Checking if any of these employees are being paid a salary less than the new salary minimum of $47,476.
- Determining if changes in job duties, compensation, or classifications will be necessary.
Additionally, they are beginning the process of determining how to communicate any changes to employees’ jobs and any new timekeeping requirements. These employers are spending the time NOW thinking about how to make this change go as smoothly as possible.
Keep in mind that employees can still be classified as exempt from overtime…but you must ensure the requirements of the duties tests are met. Last month we discussed the Executive exemption. Later this week we will discuss the Administrative exemption.