Five Things HR Departments Need To Prepare for the DOL Changes

Are you ready?  The US Department of Labor is getting ready to roll out their updated regulations for exemptions from overtime.

What five things can companies and their HR departments do to prepare?  Here is a suggested list:

  1. Keep informed.  More than likely the salary basis test will become much more of a hurdle to classifying an employee exempt. Make sure you know what the final regulations require – the preliminary notification suggests a weekly salary of $970 per week – and whether your business or industry has any exceptions from this amount.
  2. Know where you stand.  By looking at your own salary structure, you can determine how much the change in regulations will impact your organization.
  3. Devise a plan.  If you have employees who are exempt, and they won’t be with the new salary requirements, or any other requirements of the final regulations, determine how you will move forward.  There are really one of two ways.  The first way is to change the salary so the employee will be exempt, and the second is to change the employee to a non-exempt employee.  While this sounds simple, it may not be in your organization, and there are different ways to approach this.
  4. Get help.  MSEC will have the training you need along with numerous tools to assist you in dealing with this significant change.  If you are a member take advantage of what we have to offer to make sure you are ready to tackle the challenge.
  5. Use this as an opportunity to assess all of your wage and hour practices to make sure they comply with the Fair Labor Standards Act and state laws. Either conduct your own internal audit of your pay and policies, or let MSEC do it for you.

Finally, don’t forget to be on the lookout for further information on this important topic.