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New overtime salary threshold: First steps and reactions

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John Wilcox

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in Centerpiece,Employment Law,Overtime Labor Laws

The Department of Labor’s proposal to raise the overtime salary threshold to $35,308 per year probably won’t take effect until at least Jan. 1, 2020. Employers should start planning now how they will respond.

For many employers, the new rule will mean many relatively low-paid exempt employees will be eligible for overtime pay when they work more than 40 hours in a workweek. There are two ways to minimize the impact:

Give raises to affected employees so their salaries are higher than the proposed threshold. Those employees could then work more than 40 hours per week without triggering an overtime pay obligation. For employees whose annual earnings are already close to $35,308, this makes sense.

Crack down on overtime so exempt, overtime-eligible employees never work more than 40 hours per week. This may be easier said than done if unwritten rules set expectations that staff will perform some work after hours and on w...(register to read more)

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