Upcoming DOL overtime rule keeps companies on their toe
Thursday, September 1, 2016 12:25:32 PM

A panel discussion in the ‘WorldatWork’ conference, held in San Diego, has emphasized that organizations need to prepare a lot before December 1—which is the effective date of the overtime regulation of the Labor Department. Among the preparations required, finding out the affected positions, striking communications with all employees, and re-assessing pay levels as well as hike are a few important ones. Following the implementation of the DOL rule, about 4.2 million additional workers will be entitled to time as well as one-half their general pay once they start working over 40 hours during a workweek. According to the rule, workers who are now paid under $47,476 every year will be entitled to overtime pay irrespective of their responsibilities. Steven Greene, a managing member of Matthews & Greene, commented, "The rules are going to have a disproportional impact on some industries and some regions" wherein a majority of employees are likely to be below the threshold of $47,476, as per Greene. Susan Brown, HR executive from Siemens, believes that companies need to decide now whether they will hike salary levels for some specific job categories to drive pays above the nonexempt threshold mentioned in the rule or will change job responsibilities in order to align the role with the expectations for all nonexempt positions. 

(Credits – Bloomberg )