Preparing for the new overtime rules – September 2016 update
We are now another month closer to the new overtime rules that go into effect on December 1, 2016, since they were reported back on May 19, 2016. If you haven’t started preparing for the changes yet, here are the main items to get started:
- Review which of their employees are classified as exempt from overtime.
- Check if any of these employees are being paid a salary less than the new salary minimum of $47,476.
- Determine 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. We recently discussed the executive and administrative exemption duties tests in our blog and will be reviewing the remaining exemption duties tests in future blog posts leading up to December 1, 2016.