How much do you know about the Department of Labor’s new overtime exemption rule? Well, on today’s episode of unsuitable on Rea Radio, Renee West, human resources manager at Rea and our resident Federal Labor Standards Act expert, takes on the topic to help business owners sort through the details in advance of the December 1, 2016, deadline. Here’s what you need to know:
- In May, the DOL announced overtime exemption regulations that will allow millions of Americans who were previously exempt from overtime to be eligible to receive additional compensation.
- Current regulation increases the annual salary threshold from $23,660 to $47,476.
- Even though the rule has been passed and is in the process of being enacted, pending legislation may impact the timing of the rollout. If the legislation to postpone the rollout is successful, the implementation date will move to June 1, 2017.
- Even though there is currently legislation uncertainty regarding this rule, businesses should not wait to explore their options.
Renee tells us that, from an employer standpoint, this regulation is kind of a big deal as it will limit a company’s ability to hire new employees, which could put a huge strain on a variety of businesses – especially those with 30 or fewer employees. But wait, there’s more. Increased compensation of employees is not the only concern. To protect the bottom line, business owners will also have to tackle tax issues, employee benefits and bonuses.
Renee tells Dave that, even though a delay is possible, it’s not certain. Therefore, companies must have a plan in place to carry out changes that could be coming down the pike. On this episode of the award-winning Rea & Associates podcast, Renee lays out several planning techniques employers can take advantage of moving forward, including reviewing employer classification, existing salary ranges, communication tactics and more.
If you own a business, the new overtime exemption rule will impact you. And the best thing you can do, to protect your company is to stay informed. Listening to this episode of unsuitable is a great start. In addition to in depth insight and tips, listeners will discover:
- Which employees are exempt from overtime pay under the existing rule as well as under for the new rule.
- When the rule was last changed and why this change is happening now.
- What next steps will take effect after the initial rule change.
- What penalties can businesses that don’t adhere to the new rule will face.
- How much the change will cost employers over the next 10 years.
- Who will be impacted by the new legislation.
resource center
Want to learn more about the new overtime exemption rule and how it will impact your business? Check out this resource center for more great information.
official transcript
Click here to read the official transcript for episode 54: “the new overtime exemption rule: crippling companies’ ability to hire.”