When new overtime rules were announced in 2016, a court injunction put them on hold. Since then new rules have been proposed and undergone public comment and are now final.

First the good news, the new level is $684 weekly which equals $35, 568 annually.

Why this number? It is set to the 20 percentile for full time salaried workers in the lowest wage Census region (the South). Given the current pay rates and very low unemployment in Northern Virginia, you are likely to be paying significantly more for workers.

What Should You Do Now?

The first step is to educate yourself. The US Department of Labor has a wide range of resources explaining the new rules and what has and has not changed. You can find the new rule at New overtime rules

Their Small Entity Guide Compliance Guide (PDF)

A Fact Sheet on How Positions become Exempt from overtime rules
Exemption Rewuirements

Remember, salary alone is not enough to make a position exempt from overtime rules, the work duties of the position must be analyzed.

You may also want to research local wages, employment statistics, and other labor force information at Labor Market Data

 

Second, assess exactly what the impact is in your organization.

  • Who is newly eligible to be exempt from overtime pay?  Who is borderline to the new rate?
  • What are your options for each affected person?
  • How many hours does each person currently work over 40 on average?  What are the reasons for overtime work?
  • What are the costs associated with the possible changes you are considering?
  • What does your culture imply you should do? What other impacts on your culture will this change lead to?

Once you have a plan in place, you need to begin communicating with your employees. Although the rule changes do not take place until January 1, 2020, many employees will have heard something about them. Do not wait to communicate – make your plan and start explaining it now.

Need help? Have questions?  Give us a call.