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The Department of Labor (DOL) is proposing an expansion to the overtime regulations that will significantly impact virtually all businesses.  Workers who earn as much as $970 a week/$50,440 a year would have to be paid overtime even if they are classified as a manager or professional.

Currently the threshold is $23,660 ($455.00/week) which is below poverty levels for a family of four and a very small percentage of full time salaried employees fall below it according to information issued by the Obama administration.  The DOL plans on increasing the amount annually to keep pace with inflation.

The focus for your business will be your compensation budget.  In order to keep an exempt status, salaries will have to increase accordingly.  The cost to business will be tremendous and the ability to have management positions in jeopardy as well.

"Highly compensated" definition will also be changed from $100,000 to $122,148 annually.

Some thought provoking questions:
Are you properly classifying positions currently?
How will you structure your organization?
What types of positions will you be able to afford? 
How will you fill in the gaps, particularly if you need to remove management positions?
How will reduced hours of work to avoid overtime affect your business?

Get started....
  • Begin to think through those positions that will need to be reclassified
  • Determine approach to tracking hours worked
  • Be sure your job descriptions are clear, updated and appropriate

While these are federal regulation proposals, your state wage and hour laws if they are more restrictive will need to be reviewed as well.

 

Should you need help evaluating your employee classifications, give me a call or email me for next steps!  

 

Warmest regards,

Jeannine Brown Miller
President
www.jbmconsultingonline.com
716-946-8381
JBM HR Consulting Inc is a Certified Woman Owned Business in NYS
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