The Department of Labor (DOL)’s proposed overtime rule changes are generating a lot of questions and discussion. While you may have heard about potential changes to the law, do you truly understand how it could affect your employees and your business?
Paycor is holding regular webinars on this topic, and below is a collection of questions we’ve received. Check out our other resources on the DOL changes by clicking the links in this article.
Questions from Paycor webinars:
What is the earliest the DOL’s proposed overtime rule could go into
The current estimate is that the final rule could be issued in early 2016 up to October 2016 at the latest. Of course, this is just speculation and those dates are subject to change.
What industries will be affected the most by the proposed changes?
With a high number of hourly and seasonal employees, non-profit, retail, restaurant and manufacturing industries are the ones we estimate will be most affected.
Do employers have to have a minimum number of employees for this law
to apply to them?
No. It is a matter of each individual employee’s status, job and salary, not the number employees the employer has.
Is there an option for employees to choose to be considered
At this time, no there is not.
What tool would you recommend for determining whether an employee is
exempt or non-exempt?
Paycor's HR Support Center is a great resource if you are unsure of how to classify specific employees. Paycor’s recent article on exempt vs. non-exempt also provides great information.
If an exempt employee earns less than $47,476 per year, but they earn
a housing allowance, will that allowance be added to their pay to
determine whether they meet the proposed overtime salary threshold?
No, not according to the current proposal.
What qualifies someone as a “computer employee”?
The Department of Labor is the best resource on this, but generally, computer employees are those who are creating or designing software programs or performing activities such as determining the IT infrastructure. Computer employees typically have a high level of skill in the IT space.
We will add to this list as we receive additional questions. For many more questions, answers and information on the Department of Labor’s proposed overtime rule changes, please consult the DOL’s FAQ page.
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