DOL Overtime Changes: Is Your Business Ready?

Final Overtime Rule Announced

On September 24, the Department of Labor (DOL) released much-anticipated changes to overtime provisions of the Fair Labor Standards Act (FLSA). The new rule will raise the salary threshold for executive, administrative and professional exemptions.

Beginning on January 1, 2020, the salary threshold will increase from $455 per week to $684 per week. As a result, any employee who earns less than $35,568 annually will now be eligible for overtime pay. The law will also raise the total annual compensation level for highly compensated employees from $100,000 per year to $107,432 per year.

Any business that employs workers with salaries under $35,568 will be directly affected by the new regulations and face a decision: provide affected employees with a salary increase or pay them overtime.

The DOL estimates that the new rule will make 1.3 million American workers eligible for overtime pay.

This information is not intended as legal advice. You should seek specific legal advice before acting with regard to the subjects mentioned herein. Any calculations contained herein are for example purposes only.

Examine your current employees

Employers must review each exempt employee to verify that they will remain exempt under the new rules.

Track hours worked

Employers must carefully track hours worked for any employee that earns less than the $35,568 salary threshold.

Ensure accurate recordkeeping

Employers should maintain detailed records of hours worked in case of an audit.

How Paycor can help

Paycor’s Department of Labor solution offers you real-time compensation, timekeeping and reporting through one unified solution. You can also use our HR Support Center solution to updates your handbooks and company policies, or even get help from a certified HR professional.

This information is not intended as legal advice. You should seek specific legal advice before acting with regard to the subjects mentioned herein. Any calculations contained herein are for example purposes only.

Department of Labor Solution

Paycor’s Department of Labor solution offers you real-time compensation, timekeeping and reporting through one unified solution. You can also use our HR Support Center solution to updates your handbooks and company policies, or even get help from a certified HR professional. With our Department of Labor Solution, you get:

Time & Attendance

Paycor’s time solutions help you accurately manage your employee’s hours through a unified system with payroll. Employers need a time solution put in place for their affected employees, so they have the accuracy, decision support and audit trail required to effectively handle this proposed regulation.

Reporting

Employers will need to track and report data related to hours worked and compensation regularly. Paycor’s Reporting and Analytics help you get the data you need and allows you to report on compensation and hours worked data together. No need to download multiple files and copy and paste reports. Just a few clicks and you’ll have the data you need.

HR Support

Paycor’s HR Support Center will help you ensure your have up-to-date policies and employee documentation related to these updates. You can upgrade to On Demand and get help from a Certified HR Professional whenever you need it. It’s like hiring an HR team at a fraction of the cost.

DOL Overtime Changes Resources

Late-Breaking Webinar: New overtime rule announced. Is your business ready? Get recording

DOL Overtime Rule: What We Know Now Read the article

The DOL Is Cracking Down: Wage and Hour Violations Across the Country Read the article

Exempt or Non-Exempt? That Is the Question. Read the article

Avoid Misclassifying Your Employees Read the article