Get access to the exclusive HR Resources you need to succeed in 2018!
SHRM board member David Windley discusses how unconscious bias can derail workplace diversity efforts.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Use this checklist to make sure your organization is compliant with the new rules
The long-awaited new FLSA overtime rule changes have been released, and it's time for human resource professionals to make sure their organizations are fully compliant with the new requirements.
The changes make compliance more challenging for employers, but here is a checklist to make sure your company is on the right track:
1. Identify Affected Employees
The first step is to identify currently exempt employees with salaries that fall below the new salary threshold for exempt employees of
[$970 per week, or $50,440 per year].
2. Devise a Plan of Action
Determine whether to have a zone within which employees close to the new threshold will get bumped up to maintain exempt status, or whether to reclassify as nonexempt all employees whose current salary is below the new minimum.
3. Assess Your New Situation
For employees who will be reclassified, figure out how many hours they are working per week so you can model pay going forward with reasonable accuracy.
4. Determine an Approach to Setting Nonexempt Pay Rates
For example, determine whether newly nonexempt employees' hourly rates will simply be their current weekly salary divided by 40, or whether there will be an effort to replicate current pay and hours by lowering the hourly rates to account for the possibility of overtime compensation.
5. Review Your Time-Tracking Tech and Company Policies
Audit your time-tracking technology and policies to make sure you are accurately tracking employees' working hours. Be sure to set up training for employees who will now need to track their hours.
6. Evaluate Your Highly Compensated EmployeesFor employees who were subject to the highly compensated standard but now fall below the new pay level, [(between $100,000 and $122,148 per year)], determine whether those jobs satisfy the full duties test of one or more white-collar exemptions, as opposed to the relaxed duties standard applicable for highly compensated employees.
7. Prepare for the Long Term Consider whether to reclassify other positions now to manage risk and enhance compliance.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
HR Education in a City Near You
SHRM’s HR Vendor Directory contains over 3,200 companies