Proposed overtime rule changes – May 2016 UPDATE
Businesses can expect the Department of Labor’s [DOL] proposed new overtime regulations to be finalized anytime now. We don’t know the specific changes just yet…but we can prepare for what they have shared so far.
The most significant change we know of is the raising of the threshold for who would be eligible for overtime. As proposed, this would raise the salary threshold from $455 a week [$23,660 a year] to a projected level of $970 a week [$50,440 a year] in 2016.
That means that any of your current exempt [salaried] employees who make less than the threshold of $50,440 will be reclassified as hourly, non-exempt employees and you will have to pay them overtime. Alternatively, you could raise their salary to an amount greater than the threshold.
If you have questions regarding the newly proposed overtime regulations and how they may affect your organization, Organizational Architecture is here to help. Our experts can perform a thorough analysis of your workforce to determine which employees will be affected and provide procedures on how to implement these changes in your organization.