On December 1, 2016, the the minimum salary more than doubles form the current minimum for classifying an employee as exempt from overtime ($455 a week to $913 a week, or $23,660 to $47,476 per year). Are you prepared?
- Do you have your list of potentially affected employees?
- What is the cost of increasing an affected party salary to the new minimum? Is it less than the cost of keeping a salary lower and paying overtime?
- Even if you raise a salary to the new minimum, do you meet the “duties test”?
- Will you take advantage of your right under the new rule to use bonuses, commissions, or other incentive compensation as a credit toward the new salary threshold?
- Are your supervisors ready to manage the compliance costs for overtime? Do they understand what kinds of hours are considered “hours worked” (e.g., certain travel time, time spent working from home or remotely, time spent using technology for business purposes, etc.)?
- Have you considered the alternatives to paying reclassified employees on an hourly basis?
- Do you understand what kinds of compensation will have to be included in the “regular rate of pay” for overtime purposes?