Are you familiar with the new FLSA overtime rule, which takes effect on December 1, 2016? If not, it’s time to brush up on the new requirements and how they may impact your business.
In short, the changes will raise the salary threshold for overtime exemption to $47,476 annually. That’s more than twice the current threshold, and nearly 5 million Americans may become entitled to overtime wages.
A recent survey by Littler Mendelson found that 28% of employers weren’t actively preparing for the changes. For those still taking a wait-and-see approach, here are three resources to help you get up to speed.
Preparing Your Business for FLSA Overtime Rule Changes (Forbes)
Large changes like the new overtime regulations can seem overwhelming. ADP provides a path to preparing for the Dec. 1 change, including reviewing the status of your current employees, adopting time-tracking policies and developing a plan to communicate the changes to your workforce.
Breaking the News: When Workers Lose Their Exempt Status (SHRM)
One consequence of the new rule will be that some employees previously classified as exempt will not meet the new federal threshold to remain exempt. Employers will either have to increase salaries or reclassify employees as nonexempt, and many will choose to reclassify. The Society for Human Resource Management has advice on how to manage this change, including questions about hours and company property.
United States Department of Labor Q&A
The DOL answers questions many employers may have, such as the purpose of the final rule, which employers it affects, and the role that bonuses and commissions play.
