Are you prepared for the changes coming December 1, 2016? The Department of Labor recently published changes to overtime policy which will significantly change employee overtime eligibility salary thresholds. With upwards of 4.2 million workers to become eligible for overtime under this new policy change, it’s imperative that you find a system to managing your employee data.
The Fair Labor Standards Act will affect millions of businesses. According to the new law effective December 1, virtually all employers are to pay most employees at least the federal minimum wage requirements. for certain employees who work in ADMINISTRATIVE, PROFESSIONAL, EXECUTIVE, HIGHLY COMPENSATED, OUTSIDE SALES, and COMPUTER PROFESSIONAL JOBS.
Employees fitting under Administrative, Professional, Executive, Highly Compensated, Outside Sales, and Computer Professional positions are known as “exempt” positions. In order for an employee to be considered “exempt”, these employees must generally satisfy three requirements which focus on how an employee is compensated, as well as the type of job duties he/she performs.
Changes to overtime policies under the FLSA will affect your salaried employees of your organization whom:
Meet Job duties exemption requirements and have a salary ranging from $23,660 and $47,476 per year.
Meet the Highly Compensated Employee (HCE) job duties exemption requirements and have a salary ranging from $100,000 and $134,004 per year.
With this law being one which will be under constant review it is imperative for businesses operating today to consider accurate time tracking solutions of both their blue and white collar workers. The department of labor is expected to increase the minimum salaried employee threshold every three years; based on current projection the salary threshold is expected to be greater than $51,000 upon the first update on January 1, 2020
The Department of Labor will increase the salary threshold every three years. Based on current projections, the salary threshold is expected to rise to more than $51,000 with its first update on January 1, 2020. With the department of labour forecasting a shift in overtime policies now is the time to protect your business and look to invest in the versatility offered by a Smart Time Clock System.