Lobbying Affiliate: MML&K Government Solutions

When will the new overtime regulations take effect, and how can I prepare my business?


February 26, 2016
Cynthia L. Effinger
Business First of LouisvilleĀ 

Department of Labor officials have only stated that enforcement has been officially delayed, leaving us to speculate as to when the changes will take effect.  No matter when these changes arrive, businesses should prepare for them now.

The minimum salary for the overtime exemption is set to more than double.  To prepare, businesses should audit all employees to determine who may be affected.  As part of this audit, employers should determine how much time outside of normal working hours the current exempt employees spend on their jobs whether in their office, working remotely from home, or answering emails and text messages on their phones.

Next, businesses should budget for the changes, whether through raising salaries to meet the exemption, paying of overtime if the employee will be now classified as non-exempt or cutting back on work requirements. Make the hard decisions now and prepare the transition to ease the sting when the regulations take effect.

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