Understanding the DOL overtime rule |
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Tuesday, May 24, 2016 09:00 AM |
The final rule applies to overtime exemptions for executive, administrative, professional, outside sales and computer employees. The salary threshold for exemption is lower than previously proposed, but it is still more than twice the previous threshold. Employers may also use nondiscretionary bonuses and incentives (including commissions to satisfy up to 10% of the new salary level—provided those bonuses are paid quarterly or more often. In other words, year-end bonuses will not apply. The rule does not affect employees who are currently non-exempt and eligible for overtime pay. What do employers need to do in order to comply by the December 1, 2016 deadline? Evaluate your current staff. Do you have exempt employees whose salary falls below the minimum standard? You’ll need to look at their workload and current hours worked, then choose how to adjust staff duties/times (and possibly those of related positions) to meet the new requirements. Compile a list of various ways to comply with the new rule:
Consider the implications of each method of compliance. Some possible questions are:
Communicate with your employees. We’ll explore this topic in-depth at another time. But it is crucial that you let your employees know about the new rule and understand why duties, payroll, and time-keeping methods may be changing.
Learn more about the DOL final rule on overtime at ALCC’s upcoming webinar with human resources consultant Ned Frazier. ALCC will continue to review the overtime final rule and provide resources to help landscape companies comply. Coming soon to Colorado Green NOW: communicating with your employees about the rule and related changes in the workplace. Read more in this issue: |