Federal OT Rule Changes

 

Important and dramatic changes to the federal overtime rules are imminent and will impact which of your employees will be eligible for overtime. The Department of Labor is expected to release final changes to the regulations governing overtime under the Fair Labor Standards Act (FLSA) shortly. Upon their release, businesses will have only 60 days to comply with the new rules. 
 
It is possible that some of your current employees will no longer be exempt from overtime pay. The proposed changes to the overtime regulations will more than double the minimum weekly salary threshold for overtime eligibility from $455 per week to an estimated $970 a week. This means that the minimum exempt status threshold would jump from $23,660 to $50,440 annually. As a result, employees who earn up to $50,440 annually would have to begin tracking their time and attendance. 
 
The proposal also includes an increase in the salary level for highly compensated employees (HCE) from $100,000 to $122,148 annually. In upcoming years, the proposed rules would establish an automatic update every year of both the salary and compensation levels. 
 
The impact of these changes could be both costly and widespread, and it is important for your business to have a plan. As soon as these regulations are issued in their final form, we will analyze them and be ready to advise you. 
 
VertiSource HR will help you analyze your current workforce in order to develop a plan that ensures your company is in compliance with the new rules. With our solutions, we can help you prepare for and execute this transition in a manner that is seamless, compliant, and cost effective. 
 
If you have questions about the proposed changes, please contact us at HR@vertisourcehr.com.    
 

By LeiLani Quiray, SPHR/Director of HR

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