Many of you may have questions surrounding the new overtime rule and what that means to your practice and staff. Basically, when this Final Rule takes effect on December 1st of 2016, the “standard” salary level will increase to $913/week ($47,476/year) for a full-time employee. Which means anyone making a salary of less than $913/week, will automatically qualify for overtime pay when they work more than 40 hours a week. In order to prepare for the change, our office is advising our clients to do the following:
Review current employees and identify those who are exempt but paid less than $47,476 annually
Review the number of hours they typically work
Review job descriptions to determine actual exempt status
You may find you need to make some changes. If so, you have options. Just be sure to carefully consider the financial impact of your decision as well as how your decision may affect employee morale.
Please keep in mind this is an overview of the new rule. To get further guidance and details, please visit the Department of Labor’s website at https://www.dol.gov/whd/overtime/final2016/faq.htm#8.
Our final piece of advice is to consult with an employment law attorney if any of these areas are unclear or “gray”. This is a big change for both employers and employees. Taking the time to research, review, and consult is imperative when you’re dealing with employees and their paychecks!
~Lori M. Davis, CPP
Accounting/Payroll Manager
