Get Ready for Federal Overtime Regulation Changes

Update 9/24/19

Today the Department of Labor issued New Overtime Rules. As a result, it is estimated that 1.3 million more Americans will be eligible for overtime pay.  

The threshold for employees who meet the exempt executive, administrative and professional requirements of the Fair Labor Standards Act’s (FLSA) will increase to $684 per week (equivalent to $35,568 per year for a full-time employee).   

Please click the link above for more information.

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What is happening?

Based on recent publications, expect for the U.S. Department of Labor (DOL) to soon set a new salary threshold for white-collar exemptions to overtime pay under the Fair Labor Standards Act (FLSA).  The current salary threshold of $23,660 was set in 2004. Expect the new threshold to be approximately $36,000.

How could this impact my organization?

Industries such as non-profits, fast food, and retail will be most impacted, although all organizations should begin planning now to make sure they are prepared for the change. If you currently have employees who are paid a salary of less than $36,000, you may be impacted by this change.

What should I do now? 

1. Get a report that lists salaries of all your exempt employees and identify any who are below the ~$36K threshold. Consider what the impact will be if you increase their salaries to the new level.
2. Meeting the salary requirement is just one requirement stipulated by the FLSA. Your employees’ job duties must also fit within criteria set by the FLSA. Now is a great time to review all of your exempt employees job duties to verify that they comply.  More information on FLSA Executive, Administrative, and Professional exemptions can be found here.

     It is anticipated that organizations will only have two to there months to comply once the new standards are announced.

Where can I get help?

If you have an HR person or consultant, start with her/him. If you have any concerns you should consult with an employment attorney. If you would like to speak with someone from IgnitionHR, click here.