I recently read that the proposed rule related to changes to the overtime rules will likely take effective by Fall 2016. Prepare for compliance...here are the key changes:
The salary threshold will be $50.440 ($970.00 weekly)per year for a full time worker. Afterward, the salary level threshold would be updated annually based on inflation..
Keep in mind that even if a position meets the salary threshold, it doesn't automatically qualify that position as exempt. There is always the "duties test".
The "Highly Compensated" salary will go from $100.000 to $122,148.

As many of you know, this could have huge impact to your business. Some are going to consider reducing the hours in a workweek. Others may even pay a lower hourly rate so that when multiplied by time and a half, weekly compensation remains unchanged.
The negative effects of the above directly impact employee morale however. Retention could be affected but in the end minimizing the effects to the "bottom line" is the focus for business owners understandably.

If you need assistance with working through position classifications and updating job descriptions please feel free to contact JBM

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