overtime regulations are changing—are you ready?
Post on 14-Feb-2017
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How will the FLSA Changes Affect You?
You may not have heard but the FLSA is changing the rules effective
December 1st 2016… Such fun!
What do you mean you don’t know what the
rules are to begin with?
So what’s the change?
Why don’t you take a seat…
There are a few, but the one we need you to focus on is the new
wage threshold.
You may currently have a number of employees who are exempt
(salaried) for a variety of reasons… however once the new rule goes
into effect any employee who earns less than $47,476 annually, or $913 per week, will be considered non-
exempt (hourly) regardless of other factors!
Think of it this way…
One employee working 50 hours a
week who becomes a non-exempt
employee will see a pay increase of
37.5%That’s (40 hours + (10 hours x 1.5 [which is the overtime rate] = 15) = 55 hours
If that person was earning $45,000…
A 37.5% increase over the course of a
year will cost you
$16,875
Now don’t overreact!
Go to your happy place…
The 1st thing you need to do is determine how many of your employees will be effected.
Then find out how far below $47,476 they are as well as how much overtime they usually work.
THINK strategically…
It may be better to consider a raise rather than overtime…
Just remember you have to be consistent within job categories…
The 2nd thing you will need to do is make sure you are set up to track time…
You will need to account for all
time worked by
all of your non-exempt employees.
Without making people feel like they just got dropped
here
And, finally how will you communicate these changes
to your team?
We know you can handle this change…
But if you feel like you could use
some assistance…
We’re here to help
Because we don’t ever want you to run afoul of the DOL for something like
this
If the paperwork is piling up…
Shoot us an e-mail at info@hr-haven.com!
We’ll review each of your position
descriptions to determine whether
you have each position properly
classified under FLSA (a really good idea,
even before the regulation changes).
Create a current market data report for each position.
Examine your timekeeping practices, because hourly
employees have to track their time to ensure they’re compliant.
(and help you fix them if you’re not)
Help you create safeguards to limit your legal exposure
(i.e. strategies to keep your overtime in check).
And help you create a communication plan to introduce
the changes
You don’t have to go it
alone…
www.hr-haven.com913.940.5391
Send your questions to: info@hr-haven.com!
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