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For the past ten months, employers and HR professionals around the country have been hitting “refresh” on the Department of Labor’s website, anxious for news about overtime.
There was some anxiety in the business community when the Labor Department first proposed changes to the federal rules around overtime pay — specifically, who will be eligible to receive overtime wages when working more than 40 hours in a workweek. The proposed changes more than doubled the salary threshold above which many white collar workers are exempt from receiving overtime pay.
The Labor Department received more than 270,000 comments from businesses, organizations and advocacy groups on the proposed changes. Members of Congress weighed in. Employers wondered when the final version of the rule would be published, and what it would include.
On Wednesday, May 18, they got their answer.
The big changes that will interest most employers and school districts are:
Employers now have some work to do: examining to see which employees are currently classified as exempt and non-exempt, who will become newly eligible to receive overtime when the new rules take effect, who will need to be reclassified and what is the best course of action to take.
But before taking drastic action, there are a number of potential pitfalls that districts will want to be aware of. Any decision you make — whether increasing salaries to avoid paying overtime, cutting services or putting curfews on work-related email and phone use — could have potential unseen complications or even put you in violation of the EEOC or FLSA.
Our white paper walks employers and school districts through the new overtime rules and possible action steps to take. Download it today.