Checklist For Overtime Analysis

By Dori Meinert Jul 1, 2016
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To meet the Dec. 1, 2016, deadline for the new federal overtime rule, HR professionals must lay the groundwork now. To do that, experts suggest taking the following steps:

  • Identify currently exempt employees who earn less than the new annual threshold of $47,476.
  • Estimate how much overtime those employees currently work.
  • Analyze your budget to help assess your compensation options.
  • Review job descriptions for exempt positions to verify that the duties are accurately listed.
  • Ensure that employees in the same roles aren’t classified differently, because that could prompt discrimination claims.
  • Develop a communications plan for those moving from exempt to nonexempt status to minimize negative impact on morale.
  • Consider placing restrictions on overtime and explore ways to track nonexempt workers’ hours.
  • Determine whether changes are needed in other policies such as telecommuting and mobile device usage to curtail overtime and working off-the-clock.
Source: Mercer, Society for Human Resource Management.

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