Overtime is Getting an Overhaul
In less than 30 days, rules pertaining to overtime, how it's paid and to whom, will change for employers in the United States and its territories. Beginning December 1, 2016, the overtime regulations set forth by the United States Department of Labor will provide for an increase from $455 per week ($23,660 per year) to $913 per week ($47,476 per year) under the Fair Labor Standards Act (FLSA). The "Final Rule", as it is called, ensures protection to the over 4 million employees nationwide who are defined as "exempt" or "salaried". The rule also provides for future automatic updates to those thresholds which will occur every three years, beginning on January 1, 2020. As an employer, you may find that the "Final Rule" impacts employees in your organization and thus you may now be required to, not only change how you pay your employees, but also how they work.
How to prepare for the Final Rule
Review your job descriptions to determine whether they are still accurate and reflect the job being performed.
Review current employee classifications to ensure that your “exempt” employees are properly classified.
Consider implementing a Time and Attendance system to help manage overtime tracking and labor costs and to protect your bottom line.
Update your current policies and evaluate your timekeeping, overtime, telecommuting, mobile device, meal and rest breaks, training, and travel policies and practices.
Contact OMNIS for support on the FLSA Overtime Final Rule and for all your human resources needs. Email us today at email@example.com.
For more information on the Final Rule and changes to overtime, take a look at this informational video from the US Department of Labor.
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