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.