Remember those proposed DOL overtime rule changes from last year? Well, brace yourselves…
…they’re coming soon.
Back in June of 2015, The Department of Labor (DOL) officially proposed several changes to the Fair Labor Standards Act (FLSA) overtime regulations. Currently in the final review, those new DOL overtime rules are headed our way. Recently, we came across an educated guess for the date when the new rules would go into affect from The Employer Handbook. The blog suggests that the DOL will enact the changes this coming Labor Day. What’s more, the blog makes this point:
This new rule could create new overtime opportunities for nearly 5 million workers, most of whom have “manager” in their title.
But wait! Not so fast!
News outlets have reported that Republicans in the House and Senate have recently introduced legislation calling for the proposed overtime rule to be stopped in its tracks. If they succeed at stopping the changes is anyone’s guess right now, especially in light of the fact that this is an election year. And what the next Congress does in regards to this matter is an even bigger mystery.
What this means for you as an employer?
It means businesses need to be prepared! If the proposed changes do go into affect, you may now be required to pay overtime—time and one half—for hours worked over 40 hours per week to a percentage of employees who are currently salaried. That’s a lot of payroll expense and change to calculate into your costs, projections and bottom line.
We have known for some time that these proposed changes are a big concern for human resources professionals and employers all over the country. And while those changes are about to be unveiled soon, employers still don’t know exactly what will be expected of them. It’s not an exaggeration to say that the potential impact that these changes would have on how businesses handle overtime exemption is huge.
You may remember our three part series on this matter from last summer (If not, you can check it out here.), where we outlined everything we knew about the FLSA changes being proposed. myHR Partner continues to be committed to keeping you up-to-date on this very important issue, which is why we are to following the news and DOL announcements carefully. We will be passing along information we find here on myHR Blog, so be sure to bookmark us in your browser.
An FLSA review has never been timelier.
At myHR Partner, we are qualified and experienced in conducting in-depth FLSA reviews/audits. Conducting one in advance of these proposed changed, will not only assure you are current with the federal FLSA requirements, it will help you plan for the potential impact both financially and for your potential upcoming staffing changes. Our clients rely on the FLSA audit to properly classify employees based on the most current FLSA laws. To find out more about our FLSA audits, contact us today.
What else can you do?
The information out there on these FLSA changes is both difficult to dissect and confusing. Without the proper training, it can seem more like reading a foreign language than government policy statements. We hope you continue to following us, your favorite HR blog, and we strongly urge businesses to get professional assistance to navigate this compliance issue properly.