New Overtime Laws - Are You Ready? - The Blytheco Blog
New Overtime Laws – Are You Ready?

New Overtime Laws – Are You Ready?

Overtime Law SalariesAre you aware of the new overtime law that will be taking effect on December 1st, 2016?  Do you know that this will affect your white collar workers too?  How will it affect your business?  Is your company at risk?

With December 1st fast approaching, don’t wait until the last minute to decide how to handle this new law.  Call us today at 800-425-9843 x2314 or email our team at hrhelp@blytheco.com

What’s the overtime law all about?

In a nutshell, this is about overtime pay for ‘white collar workers’ below a determined salary level.  The previous salary was set at $23,660 per year and the new salary requirement is set at $47,476 per year.  Salaried white collar employees paid below the updated salary level are generally entitled to overtime pay, while employees paid at or above the salary level may be exempt from overtime pay if they primarily perform certain duties.
Read more detailed information from The Department of Labor

The Final Rule also raises the compensation level for highly compensated employees subject to a more minimal duties test from its previous amount of $100,000 to $134,004 annually.

We suggest you take the following actions as soon as possible:

  • Create a list of salaried employees making less than $47,476 ($913 a week)
  • Create list of highly compensated employees making less than $134,004 ($2577 a week)
  • Identify how many employees this affects
  • Review the hours these employees work
  • Decide if employees will be given a raise to meet new threshold or changed to hourly pay
  • Decide how to track this
    • Does our organization track time properly or are we liberal about time?
    • Is the time accurate?
    • Who will monitor this for the company?
  • Decide if this is going to be a manual process or automated
    • If manual- How will we do it?
    • Automation – What software will do this?
      • Do we already own it?
      • Do we need to purchase it?
        • What is the cost?
        • How long is a system implementation?
        • How long will it take our organization to learn a new system?
        • Do we need to look at an entire HR system rather than just one piece?
      • Review or create OT policy
      • Review benefit and time off plans
        • Hourly vs Salary
      • Legal Advice
      • Do we need legal help?

With December 1st fast approaching, don’t wait until the last minute to decide how to handle this new law. Call us today at 800-425-9843 x2314 or send our team an email at hrhelp@blytheco.com.

To further assist, we have included links to information from the Department of Labor and other articles of interest.

Avatar for Greg Went

Greg Went is a Marketing Specialist for Blytheco. He has been with the company for over 15 years.

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