Welcome to the HR Blog

Find the answers to your most pressing human resources questions from the HR experts at Sage Solutions Group.

Employee Engagement. What it is. What it isn't. Why you should care. Blog 2 of 4.

In the first installment of this blog, we discussed the differences between employee satisfaction and employee engagement. While satisfaction broadly gets at an employee’s contentedness with aspects of their jobs, engagement gets at...

Employee Engagement. What it is. What it isn't. Why you should care. Blog 1 of 4.

Employee engagement is one of the most significant organizational indicators. When an organization has low levels of engagement there are a myriad of negative outcomes that can and do occur.

Fall is a Great Time to Review Your HR Compliance

As the weather begins to change and the fall colors are bright, it is time to put the fun of summer behind us and make a plan to review our HR files to be sure they are up to date and in compliance. An annual audit of company handbooks, policies...

Want to Stay Out of News Headlines? Be Wary of Common Payroll Pitfalls!

All too frequently employers make news headlines for violating wage and labor laws. A recent example was cited in the Detroit News when it reported a major health care system was fined...

Employee Handbooks

The National Labor Relations Board (NLRB) has increased its attention and focus on employee handbooks recently. While most think of the NLRB in terms of unionized employers, its...

How Can An HR Consultant Help With Hiring New Employees For Your Business?

Running a business in today's economic environment can be difficult, to say the least. There are companies that are maintaining a lean profile in order to maximize earnings and profits. New employees are an expensive proposition especially when...

What Does An HR Audit Measure?

The greatest asset of any business is its employee. An effective HR department provides stability and structure and is an integral part of both small and large companies. The objective of the HR or Human Resource office is to ensure businesses and...

When Should I Hire An HR Consultant?

When you were a kid, you dreamed about becoming an entrepreneur someday. Two years ago, you turned this dream into a reality. Sitting at the desk in your office, you realize how quickly your business has blossomed. You sense some changes need to...

Time to Audit…

Winter is just around the corner. Daylight savings time is coming soon. Many of us will arrive to work in the dark and leave in the dark. This brings many new hazards into the workplace. It is time to look around and see the trip-fall hazards...

Recruitment Tips…

The economy is doing better…. That’s a good thing…. Right? It is, unless you’re a recruiter. Because in good economic conditions, there are real challenges to attracting talent. Some new businesses have had to delay opening...

Fall is a Time of Change and OSHA is Changing with the Season

Just when we thought we heard enough from OSHA, we learned we were wrong. OSHA rules are changing again. Effective November 1, 2016 there will be new reporting requirements phasing in over the next 2 years. Establishments with 250 or more...

Changes… Changes… Change

The year 2016 has been a big year for change in labor laws. Poster requirements have changed … Effective August 1, 2016 the Department of Labor (DOL) revised the Federal Minimum Wage Poster to remove specific civil monetary penalty amounts...

Posters 101

Do you find complying with labor posters to be a real maze of red tape? As many employers have found, determining the correct posters requires a fair amount of research. Not only do you have to ensure you have the correct federal posters but you...

Insurance, with benefits?

Many small businesses purchase quite a lot of insurance; from workers’ compensation to directors and officers to general liability. While the main benefits of insurance are obvious, there are often additional benefits that are rarely take...

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NAVIGATING THE DEPARTMENT OF LABOR’S UPDATED MINIMUM WAGE FOR SALARIED EMPLOYEES.

July 1, 2024, marks a milestone as the Department of Labor (DOL) implements a new salaried exempt minimum wage. This shift requires careful consideration from both employers and employees alike. While preparation is key, it's essential to approach this transition with both strategic planning and caution. In this blog, we'll explore the nuances of the DOL's new regulations, offer insights into effective planning strategies, and underscore the importance of navigating this change thoughtfully.

The DOL's updated regulations introduced revised thresholds for employees to qualify as exempt from overtime pay under the Fair Labor Standards Act (FLSA). Key components of these updates include:

The minimum annual salary threshold for exempt employees rises to $43,888 on July 1, 2024.
Alongside the salary threshold, employees must meet specific duties tests to qualify for exempt status, evaluating the nature of their job responsibilities.

To effectively prepare for the new regulations, employers should consider the following strategies:

COMPLIANCE ASSESSMENT

This entails a review of your workforce to identify employees falling below the new salary threshold. Keep in mind that you need to review the category each employee falls into to ensure you are evaluating against the correct minimum wage threshold. Now is also a great time to evaluate their roles and responsibilities to determine eligibility for exempt status.

FINANCIAL ANALYSIS:

Assess the financial implications of salary adjustments versus reclassification. Consider budget constraints and operational costs. Keep in mind that as wages go up so do other costs like workers’ compensation and many insurances/benefits.

COMPENSATION REVIEW:

While completing a financial analysis, consider looking at your overall compensation structure, as this minimum wage increase could necessitate changes to your compensation plan.

COMMUNICATION PLAN:

Develop a clear communication strategy to inform employees about upcoming changes, address concerns and questions transparently. Hold on to this plan until you are positive there will be no legal challenges.

TRAINING AND EDUCATION:

Provide thorough training for HR and management teams on the new regulations. While proactive planning is encouraged, caution should be exercised to avoid premature implementation! Here are some of the pitfalls of prematurely implementing changes:

Given the evolving landscape of labor regulations, there is a great chance that these rules will be met with legal challenges, delays, stays, and changes. This is exactly what happened in 2016-2017 when the DOL proposed similar changes. Employers who made the changes or announcements too early were forced with difficult decisions resulting in some employers pulling back announced increases. This can result in serious morale and productivity issues.
Premature announcements when the leadership is unsure themselves may also cause confusion and anxiety among employees.

In addition to the announced July 1 changes, there are anticipated adjustments for January 2025 as well. The DOL plans further adjustments effective January 1, 2025, with the minimum salary threshold increasing to $58,656 per year. This staged approach should be carefully reviewed as you prepare for the new regulations.

The DOL's new regulations signal a significant shift in labor standards, demanding careful planning and execution. By navigating this transition with foresight and caution, employers can ensure compliance while fostering a positive workplace environment amidst evolving regulatory landscapes. In short, as employers, we should be prepared for these changes and adapt policies accordingly. Sage Solutions Group is here to support you in reviewing your options related to this new regulation.

Welcome to the HR Blog

Find the answers to your most pressing human resources questions from the HR experts at Sage Solutions Group.

The DOL's updated regulations introduced revised thresholds for employees to qualify as exempt from overtime pay under the Fair Labor Standards Act (FLSA). Key components of these updates include:

The minimum annual salary threshold for exempt employees rises to $43,888 on July 1, 2024.

Alongside the salary threshold, employees must meet specific duties tests to qualify for exempt status, evaluating the nature of their job responsibilities.

To effectively prepare for the new regulations, employers should consider the following strategies:

COMPLIANCE ASSESSMENT

FINANCIAL ANALYSIS:

Assess the financial implications of salary adjustments versus reclassification. Consider budget constraints and operational costs. Keep in mind that as wages go up so do other costs like workers’ compensation and many insurances/benefits.

COMPENSATION REVIEW:

While completing a financial analysis, consider looking at your overall compensation structure, as this minimum wage increase could necessitate changes to your compensation plan.

COMMUNICATION PLAN:

Develop a clear communication strategy to inform employees about upcoming changes, address concerns and questions transparently. Hold on to this plan until you are positive there will be no legal challenges.

TRAINING AND EDUCATION:

Provide thorough training for HR and management teams on the new regulations. While proactive planning is encouraged, caution should be exercised to avoid premature implementation! Here are some of the pitfalls of prematurely implementing changes:

Premature announcements when the leadership is unsure themselves may also cause confusion and anxiety among employees.