For almost 3 years the proposed new overtime rules have been hanging over employers’ heads. Back in 2016, the DOL’s proposed overtime ruling threatened to increase the salary threshold for certain exempt employees from $455 per week ($23,660 annually) to $913 per week ($47,476 annually).  Not a small pill to swallow! This proposed ruling was blocked in the court system and the DOL threat was almost forgotten.

Well, it’s back and, this time, we do not expect it to go away. The good news is that the salary threshold will likely be increased to a lesser amount of $679 per week ($35,308 annually).

What does this mean for employers? You need to start preparing now. To make the best possible plans for your organization you really need to (1) understand the necessary criteria that allows you to classify an employee as exempt from overtime, and (2) determine how to budget for an increase in your payroll costs. Remember, salaried does not equal exempt.  The determination to classify an employee as exempt from overtime is not up to the employer, but rather the DOL’s guidelines and opinion letters, State statutes and local guidelines where the employee is working and relevant court decisions. 

Interested in learning more?

Learn how to Do the Math: Track & Calculate Overtime Accurately – the 6th Deadly HR Sin in our complimentary webinar series called “THE 7 DEADLY HR SINS” on September 19th from 8:30 to 9:30.

This online workshop will provide participants with strategies to avoid overtime errors; failing to “measure twice and cut once” regarding overtime can lead to personal liability and double damages! To avoid making wage and hour mistakes, this workshop will review exempt versus non-exempt classifications, various overtime payment options, and common overtime errors made by small employers.

Participants in this online workshop will learn about:

  • how to make exempt versus non-exempt classifications,
  • paying non-exempt a salary,
  • calculating overtime, and
  • understanding what constitutes “paid” work time.