On May 28, when the Department of Labor announced the Dec. 1 effective date for the new overtime salary threshold, it seemed like there was plenty of time to prepare. Now that date is quickly approaching and is only two months away!
There may be a reprieve as the National Federation of Independent Business filed a petition with the U.S. Department of Labor (DOL) to delay the start date by six months, until June 1, 2017.
However, it is still in your best interest to be ready in case the Dec. 1 effective date stands.
Here are steps you should take now.
>> Run a salary report including all of your exempt employees. The overtime exemption salary threshold is increasing to $47,476 per year, up from the current $23,660. Identify exempt employees making under $47,476. You either need to:
- Raise their salary to the minimum threshold or
- Change their FLSA status to salary nonexempt or (hourly) nonexempt. You must also implement a system to track their hours.
>> This is also a good time to evaluate your exempt employees and make sure they really qualify as exempt under the white collar exemption duties test.
>> Work with your CFO to make sure your organization has budgeted for the possible increased salary obligations.
