Skip to Main Content

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

newspaper written 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 HR 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!

 

 

6 Key HR Issues for Small Businesses

  Most Common HR Mistakes for Small Businesses:   #1    FAILURE TO COMPLY WITH MIOSHA Although most reporting requirements through MIOSHA start with 11 or more employees, a small business is required to...

6 Tips to Help Improve Your Cybersecurity

We all know the importance of cybersecurity these days, but the phishing attempts and other scams have gotten increasingly hard to detect.  Cell phone numbers are even being targeted where individuals are receiving text messages that appear to...

A Time To Celebrate. But!

Michigan will open on June 22nd to full capacity and the mask mandate is no longer required for residents.  YES!  It has been a long hard road for most all businesses.  Time to rip off that mask and celebrate?  Not so...

How to Lose Thousands of Dollars in Just One Day

The year 2021 is already proving to be a complex one for business owners.  There’s extended closures, new laws and rules to consider, PPP round two, and last but certainly not least, extremely sophisticated hackers looking to steal your...

COVID-19 Pandemic: Return To Work Plan

8 Tips for Bringing Your Employees Back to Work Safely and Successfully Now that more and more businesses are re-opening, it's important to understand how to safely bring your employees back to work. Here are 8 tips to keep in...
Page: 1234 - All
734-238-3504