You may have heard that the The U.S. Department of Labor (DOL) has recently published massive changes to the overtime rule that will make approximately 4.2 million currently exempt employees eligible for overtime pay later this year.
Most employers are classifying their employees as either hourly or salary and this could mean big changes for your company!
If you haven’t heard about this, or don’t know exactly what this even means or why it’s important then check out these quick facts:
- The rule extends overtime protections to 4.2 million workers who are not currently eligible under federal law.
- Workers who earn as much as $47,476 a year ($913 a week) will have to be paid overtime, even if they’re classified as a manager or professional.
- The Department of Labor will increase the salary threshold every three years. Based on current projections, the salary threshold is expected to rise to more than $51,000 with its first update on January 1, 2020.
- Employers must comply with the new regulations by December 1, 2016.
Image Source: https://www.shrm.org/legalissues/federalresources/pages/flsa-overtime-rule-infographic.aspx
If you want to find out what this means for your company then I advise you head over to SHRM’s (Society for Human Resource Management) website that neatly outlines the impact this change will make to various departments in your company.
The website is great in the sense that not only does it cover all the information regarding the new law changes, but also provides resources so that you can make the transition as comfortable as possible.
Let us know what you think about these changes and have a great day!