DOL final rule regarding overtime released |
Thursday, May 19, 2016 02:00 AM |
On May 23, the US Department of Labor (DOL) will post on the Federal Register a final rule regarding overtime for white collar workers. The final rule was amended slightly from the rule changes proposed last fall. The standard salary threshold is lower (meeting the 40th percentile of earnings in the lowest-wage Census Region rather than nationally), while the threshold for highly compensated employees was raised. Instead of annual updates to the salary thresholds, the levels will be updated every three years. Nondiscretionary bonuses and incentive payments can be included for up to 10% of the salary level. Compliance with the rule is required by December 1, 2016. In the coming weeks and months, ALCC will present resources via Colorado Green NOW and alcc.com to help members prepare. There are plans to present a webinar to review the rule and help you plan for compliance. Before then, it’s important for employers to evaluate their staff, take stock of what exempt employees are earning, and decide what changes need to be made. Will you choose to continue current salaries and pay overtime? Or will you bring employees up to the new salary level? Another key factor in compliance will be communication. It is critical that management and employees understand the changes and be aware of how to track and manage overtime. Employers must stress the importance of proper time tracking and reporting. From US DOL:
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