HR In The News – New Overtime Laws

1. What are the proposed changes of the new Overtime laws?
The Department of Labor proposed a change to the Overtime laws which would double the Fair Labor Standard Act’s salary threshold for exemption from Overtime pay. That means that workers who do not earn a minimum of $47,476 a year will have to be paid Overtime regardless of their job duties.

2. Why are these changes being held up in court?
These changes are being held up in court because it is believed that the Overtime rule fails to acknowledge the high increase to the salary threshold. It also fails to answer the question as to how many of those previously exempt employees works have been exempt based on their job duties.

3. How will this affect HR in the immediate future?
As far as HR is concerned, many employers have already raised exempt employee’s salaries to meet the new threshold or they either reclassified employers to non exempt status. For the HR professionals who have already implemented these changes to come into compliance with the new Overtime rule, they now sit in a state of limbo as what to do now while the law is sitting to be passed.

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