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Trouble meeting Aug. 23 deadline on overtime rules? You’re not alone

by on
in Human Resources

In April, the Labor Department unveiled new rules that redefine the Fair Labor Standards Act (FLSA) definitions of "exempt employees" (not eligible for overtime) and "nonexempt employees" (eligible for overtime) for white-collar jobs. Since then, businesses have been scrambling to digest the rules and get in compliance by the Aug. 23 deadline.

Will they be ready? One in five companies says "No."

According to a Hewitt Associates survey, 20 percent of businesses say they don't believe they'll have analyzed each white-collar position and made appropriate classification changes, if necessary, by that date. Another 23 percent say they'll meet the deadline, but only by devoting additional resources.

Companies say their biggest problem is that existing documentation (job descriptions, FLSA audits, etc.) is old, incorrect or inconsistent. The second-biggest problem: understanding the new rules. Occupations presenting the greatest classification problems are IT workers and shift/production supervisors.

Free E-visory report: For a detailed description of the new exemption rules, access our free E-visory report, Complying With the New Overtime Rules, at www.you-and-the-law.com/extra.

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