DOL Overtime Changes: Is Your Business Ready?
The Department of Labor recently proposed changes to the current overtime rules that could impact an estimated 3.6 million salaried workers. Here’s what you need to know.
Proposed Overtime Rule Changes
On August 30, 2023, the U.S. Department of Labor announced a proposed overtime rule that would raise the weekly salary threshold under the Federal Labor Standards Act (FLSA) from $684 to $1,059. That equals around $55,000 per year. The proposed changes would also increase the annual salary threshold for highly compensated workers from $107,432 to $143,988. If the new law is passed, it would extend overtime protections to nearly 3.6 million salaried employees. The DOL’s 60-day comment period expired November 7, 2023. Paycor is keeping an eye on the proposed changes and will provide an update when the DOL issues its final guidance.
2019 Overtime Rule Recap
The DOL previously announced changes to the overtime rule on September 24, 2019. At that time, the rule raised the salary threshold for executive, administrative, and professional exemptions from $455 per week to the current level of $684 per week. As a result, any employee who earns less than $35,568 annually is eligible for overtime pay. The law also raised the total annual compensation level for highly compensated employees from $100,000 per year to $107,432 per year.
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.
How You Can Prepare
In the event the 2023 proposed changes are passed into law, you’ll need to take several steps to ensure your employees are properly classified.
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 who earns less than the $55,068 salary threshold.
Ensure accurate recordkeeping
Employers should maintain detailed records of hours worked in case of an audit.
How Paycor can help
Don’t wait to act. Now is the time to prepare for impending changes and Paycor has the products to help you stay ahead.
Paycor’s Department of Labor solution offers real-time compensation, timekeeping, and reporting through one unified solution. You can also use our HR Support Center tool to update your handbooks and company policies, or even get help from a certified HR professional.
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 update 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.
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.
Resources
Explore our resource center to uncover articles, guides, webinars, infographics and more — all designed to help healthcare leaders unlock the true power of HR.
Article
Read Time: 9 min
Exempt vs. Non-Exempt Employees. What’s the Big Difference?
Misclassifying employees can result in enormous financial consequences for a business. Understand the difference in exempt and non-exempt employees.
Guides + White Papers
Read Time: 2 min
DOL Final Overtime Rules: Quickstart Guide for Employers
The DOL issued final overtime rules on September 24, 2019. Use this guide to help your organization comply with regulations.
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