Overtime rules are nothing new. We know that certain employees must be paid overtime rates when working more than forty hours per week. Other workers are not subject to overtime rules. What is very possibly changing, however, is the Department of Labor’s salary basis that contributes to the delineation between these groups. Currently, exemptions for workers of overtime rates under the Fair Labor Standards Act include an earnings threshold of not less than $684/week. While it is difficult to determine how much the DOL will raise this amount, discussions in the highest levels of government just a few years ago attempted to increase the threshold to $921/week. At the time, this would have made an additional 4.2 million employees eligible for overtime.
Base compensation is not the only factor to consider when determining a workers’ status as exempt or non-exempt. There are key details that must be assessed for the type of position. During this special “live” session, you will gain specific knowledge on the exemption categories, their features, and what to do with this information.
Although the DOL will almost certainly grant employers several months of lead-up time before implementing the new threshold, understanding the potential impact of a dramatic increase now will help employers to make appropriate adjustments in the future.
