John Heller’s article “San Antonio Employers Need to be Ready for Overtime Change” was featured in San Antonio Express News on December 17, 2015.
The Department of Labor received an astonishing 270,000 comments to its recent proposal to increase by more than double the minimum salary employees must make to be classified as overtime exempt. According to the agency’s solicitor, the number of comments has caused it to schedule the release of the final rule for July 2016, instead of its original estimate of late 2015 or early 2016.
To qualify for a “white collar” exemption from overtime pay, the Fair Labor Standards Act, or FLSA, requires employees to meet both the “duties” test and to receive a guaranteed minimum salary, currently set at $23,660 annually.
In the article, John discusses the big debate and political aspects revolving the agencies proposal that would raise the required minimum salary for most FLSA exemptions to $50,440 annually.
John states that although the final rule will not be announced until July, San Antonio employers should act now. They should use the proposal as a guidepost in determining the impact on their employees and their options — from increasing salaries or converting employees to an hourly rate to hiring, adjusting pay periods or implementing a fluctuating workweek.
Regardless of their choice, planning should begin immediately. They can begin tracking and controlling hours worked now to avoid employees accumulating overtime hours after the switch. Employers also can evaluate the cost ratio of hiring additional full- or part-time workers in order to reduce overtime hours for all employees.
Navigating the challenges of the anticipated rule may be a difficult feat. One option is consulting employment experts to avoid potential risks.
To read the full article, please visit San Antonio Express News.
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