5 Things Employers Should Do Now That the DOL Published the Final Overtime Rule

5 Things Employers Should Do Now That the DOL Published the Final Overtime Rule - Michigan Human Resources Blog - Sage Solutions Group - Breaking_NewsThe Department of Labor(DOL) published the final overtime rule on September 24, 2019. The DOL is updating the earnings threshold necessary for exempt executive, administrative and professional employees from the Fair Labor Standards Act’s minimum wage and overtime pay requirements. The new overtime threshold was set at $35,568. This amount is slightly higher than the amount anticipated in the initial draft that set the amount at $35,308.

Highlights of this announcement that are effective on January 1, 2020 include:

  1. The minimum standard salary exempt level threshold for overtime eligibility is $35,568
  2. The exemption threshold for highly compensated employees is $107,432
  3. Employers may use non-discretionary bonuses such as commission to satisfy up to 10% of the standard salary

According to the DOL, “1.2 million additional workers will be entitled to minimum wage and overtime pay as a result of the increase to the standard salary level and an additional 101,800 workers will be entitled to overtime pay.”

What employers should do now?

  1. Audit your exempt classifications (Remember this salary threshold is just one aspect of the rules.)
  2. Ensure that the employees currently receiving an exempt salary are truly exempt given the new threshold and all other requirements
  3. Review employees that are earning a salary less than $35,568 and determine how you want them paid starting in January 2020
  4. Develop an action plan, but do not act in advance of the start date (Remember the “Drill of 2016”! Those who acted in haste, learned the ruling was struck down days before the deadline.)
  5. Begin to immediately develop a communication plan for your employees

 

Should you need more clarification regarding this or any other HR5 Things Employers Should Do Now That the DOL Published the Final Overtime Rule - Michigan Human Resources Blog - Sage Solutions Group - Act_Now matter, contact Sage Solutions Group at 734-855-7187 or visit us on the web at www.sagesolutionsgroup.com. Sage offers a free HR audit to assess your current HR health, call now to schedule!

 

 

FORM I-9 IS ABOUT TO EXPIRE: WHAT SHOULD I DO?

As an employer or human resource representative, you probably use the USCIS Form I-9 constantly as you hire new employees.  Even though this is a familiar form, you may not have looked at the expiration date in a while. Well…if you...

6 REASONS TO HAVE AN EMPLOYEE ASSISTANCE PROGRAM

We live in a time where stress is all around us.  Stress at work can come in the form of deadlines, heavy workloads and work conflicts.  Stress at home may be the result of relationship issues, health challenges, packed kid schedules or...

4 Ways Flexibility in the Workplace Really Works!

  With 2019 upon us, many businesses may be evaluating their business and human resource practices to prepare for what is to come in the year ahead.   As advancements in technology continue to give employees the opportunity to...

Cleaning Up Your Digital Footprint

What is a digital footprint, you ask?  It is the unique set of traceable digital activities, actions, contributions and communications that are manifested on the Internet or on digital devices. One aspect of your digital...
Page: 123 - All
734-238-3504