As reported in September, Big “I” members, along with other employers, must adhere to new regulations on overtime pay from the U.S. Department of Labor (DOL) by Jan. 1, 2020. For most agencies, it will be a matter of adjusting to the new salary threshold levels. But, for others, it may be time to start documenting hours worked.
A survey conducted before the 2016 overtime rule found that 39% of all salaried employees were not required to track and report their time. Of those employed by organizations that did not require time tracking, 77% of employees reported working outside of standard work hours, creating a potential wage and hour dispute.
DOL estimates that 1.2 million additional workers will be entitled to overtime pay as a result of the increase to the standard salary level for “white collar” exemptions and an additional 101,800 workers will be entitled to overtime pay due to the increased threshold for “highly compensated employee” (HCE) remuneration.
Big “I” staff created a three-page primer to help members prepare for the new overtime rules. It is important for every member agency, as well as state associations, to evaluate current employees to determine if they are eligible for overtime pay and work with local counsel to ensure compliance with applicable federal and state laws.
To learn more about the major regulatory change on overtime pay, watch a Big "I" webinar, which took place Wednesday, Oct. 30 at 2:00 p.m. ET. The one-hour session was co-hosted by Affinity HR Group, a national HR consulting resource and Big “I” Hires partner.
Heather Eilers-Bowser is Big “I” counsel, federal government affairs.