In May you no doubt heard about new rules from the Department of Labor related to employees who are eligible for overtime pay. This rule creates big changes for employers and employees effective on Dec. 1.
This rule change is complicated, impacts every single organization (no matter how big or small you are) and will have a significant impact on your company. Chamber member Willis Towers Watson has put together a guide to help ensure you’re ready for the new overtime rule in December, explaining the final regulations, implications for employers and implications for benefits plans.
Here are a few tips from Willis Towers Watson:
Step 1: Find out if your employees are affected
This new rule states that anyone making $47,476 or less annual is eligible for overtime pay (that’s an increase from the current rate of $23,660), so it’s likely you are impacted. That said, there are some employees who are provided exceptions, so the details matter.
Step 2: Get ready
Identify the employees or jobs which will be affected and decide on your plan of action. You have options: you can pay overtime, or raise salaries, or closely track and manage the number of hours worked each week. Your options might vary depending on the job as well. No matter which option works best for you, the key is to clearly communicate those changes with your team to ensure everyone understands how these changes may affect them and how you plan to manage the change.
Step 3: Look forward
Under this new rule, the salary threshold for overtime pay will be updated automatically every three years, starting Jan. 1, 2020. While that can feel like quite a ways out, we know it’s not. You’ll want to monitor the rule and the salary adjustments before they go into place.
Looking to learn more? Download the guide from Willis Towers Watson today—and be ready for December.