The new Overtime Law goes into effect for all employers this December 1st! Crap, that is 1 ½ months away! Crap, December 1st is on a Thursday! Are you ready to comply?

This post explains the chatter around possible postponement of the law as well as critical things you need to think about before implementing change.

A Postponement?

You may have heard that the law might be postponed for 6 months, or that there will be “phases” for salary amounts. Well, I wouldn’t count on it!

Yes, 21 states have filed a lawsuit and the House of Representatives did pass a bill to delay the law. HOWEVER, the bill will have to pass the Senate and most importantly, not be vetoed by the President. President Obama did state that he would veto this bill if it came on his desk.  

Like I said, don’t count on this law being postponed!

Are you ready?

Because everyone is stuck complying with this law, it is best to get ready now. If you haven’t done so already, you may be rushed. Don’t wait till the last minute! 1 ½ months goes quick!

My two previous posts, CALM DOWN! What You Need To Do About The Overtime Law Change and New Overtime Law! give you an overview on the law and recommended steps to comply in a way that makes sense for your business.

Remember: All employees must meet both the new salary threshold AND the “duties test” to be classified as exempt.

  1. The “duties test” has not changed
  2. Standard salary threshold is now $913 a week, or $47,476 a year
  3. Highly Compensated Employees making $134,004 a year or over will not be eligible for overtime
  4. Nondiscretionary bonuses, incentive payments, and commissions to non-highly compensated employees will be allowed to account for up to 10% of the salary threshold as long as they are made at least quarterly.

December 1st is a Thursday!

To make things even more confusing, December 1st is a Thursday! How many of you start your work week on a Thursday?? Yeah, not many of you!

What does that mean?

  1. You can have two pay rates on one paycheck
  2. You have to coordinate with your payroll provider to make necessary changes
  3. You have to start logging time for newly overtime eligible employees the beginning of that work week
  4. You must be prepared to manage overtime or pay overtime if hours at the end of that work week are over 40hrs (or 8hrs in a day for applicable states)

8 Critical questions to ask yourself and your management team:

  1. What changes make sense for your business?
  2. How will you manage overtime?
  3. How will your employees record their time?
  4. How will you communicate the changes?
  5. When will you communicate the changes?
  6. How can you get your payroll ready?
  7. What new policies must be put in place to comply?
  8. Will there be changes to benefits eligibility?

Don’t bet on the government postponing this law! Plan and act now!

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