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Checklist For Overtime Analysis

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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