“But I thought they were exempt employees”!!! The lament of the uninformed HR Director. The most prominent change in the final changes to overtime regulations by the Dept. of Labor is the increase in the salary level required for for exempt employees. The new “exempt” level is $47,476 annually ($913/week) to have the status of an, exempt employee.
Employees formerly classified as exempt ($455/wk.–$23,660 annually) and earning less than $913/wk. should be reclassified as non-exempt and will be entitled to overtime for any hours worked in excess of 40/wk. Additionally, the salary threshold ($913/wk.) will be automatically updated (increased) every three years going forward.
To discuss other changes or non-changes (the “duties test” is unchanged) and to discuss ways to minimize the impacts including how to control overtime and for planning into the future, consult your employment/HR counsel.