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OT rules are here! 5 steps you must take now

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in Human Resources,Overtime Labor Laws

If you aren’t already geared up to respond to the Department of Labor’s new rules on white-collar overtime, you are already way behind. The new rules will change the way you handle overtime. Here are five things you absolutely must do now:

  1. Create a list of exempt executive, administrative and professional employees. List their annual salaries.
  2. Check your labor budget. How much room is there to provide immediate raises to employees who already earn close to the new salary threshold of $47,476 per year?
  3. Establish your cut-off point. Determine how many employees on the list already earn at least the new minimum salary and how many are close enough to warrant a raise within your labor budget in order to keep their exempt status.Take into account the impact new overtime payments will have on that budget if you convert employees to hourly and don’t restrict their work hours or set their hourly rate below their current salary divided by 40.
  4. Determine which current exempt employees will need to be converted to hourly employees eligible for overtime. Careful: You can’t just convert some employees in the same classification and leave duties the same. That could spur huge discrimination and misclassification class-action lawsuits.
  5. Review your policies on off-the-clock work, including accessing company email, documents and network drives after hours. Do you need new restrictions?

Revisit your telecommuting rules as well to ensure no one works off the clock without authorization.

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