In case you missed it, on August 31, 2023, the U.. Department of Labor (DOL) proposed new overtime regulations. Did you hear about it? Now, I know you are thinking, “Tina, that’s old news.” But the comment period closes November 7, 2023 if no extension is granted. That means this new rule could take effect and you might not be ready. And, since you are probably planning your budgets for next year anyway, you might want to factor this into the mix.

Let me give you the skinny.  In a nutshell, at the end of August, when you were getting ready for your last summer BBQ, the DOL announced that it intends to raise the exempt salary threshold from $684 per week to $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from overtime pay. That is, of course, assuming they meet the duties test. This new rule will impact 3.6 million employees in the first year. 

Now, there may be some extensions, and the final number may be less than $55,068, but, nonetheless, a change does require some planning and budgeting. The last person you want to see paying you a visit is an agent from the Department of Labor. So, what can you do now?

1. Look at your workforce;
2. Examine job descriptions;
3. If you have employees that are between the current threshold and the new threshold – decide whether to raise their salaries or convert them to hourly;
4. Address employees who probably should have been non-exempt but were salaried exempt;
5. People like getting a salary – consider the impact on culture and morale; and
6. Develop a communication plan for employees to understand the changes.

And if you’re still having trouble, the good people at Loutel are here to help you.