Regulatory Update–New Exempt Rules

Notice to Employers…

The Department of Labor (DOL) has issued a new law regarding overtime pay. The new rule qualifies workers for overtime exemption, and raises the salary threshold from $455/week (the equivalent of $23,600/year) to $913/week ($47,476/year). Over 4 million workers will be affected.

For an employee to be considered overtime exempt, they must meet the new wage base as well as the classification rules. US Wage & Hour Division Fact Sheet #17A.

How Employers Can Prepare:

1. Identify exempt (salaried) employees who make less than $47,476 per year
2. Determine employee’s hours worked during an average work week
3. Calculate employee’s current hourly rate
4. Calculate employee’s revised annual pay required under the new law

How Employers Can Respond:

1. Pay time-and-a-half for overtime work
2. Raise workers’ salaries above the new threshold ($47,476)
3. Limit worker’s hours to 40 per week
4. Some combination of the above

We Are Here to Help!

Many options can keep you in compliance, like: salary workers becoming hourly; implementing a time and attendance system; or increasing staff to eliminate OT, thereby dividing work hours among more employees.

Your trusted ConnectPay sales rep will take you step-by-step through various strategies to handle the new regulation with your bottom line in mind.

The DOL Final Rule

Contact Us any time for more information or Find more helpful resources on our website



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