First steps: Gauge the impact of new OT threshold.


For many employers, the proposed new $35,308 overtime salary threshold (see article at left) would mean many relatively low-paid exempt employees will be eligible for overtime pay when they work more than 40 hours in a workweek.

Here are two potential ways to minimize the impact:

Give raises to affected employees so their salaries are higher than the proposed threshold. Those employees could then work more than 40 hours per week without triggering an overtime pay obligation. For employees whose annual earnings are already close to $35,308, this makes sense.

Crack down on overtime so that exempt, overtime-eligible employees never work more than 40 hours per week. This may be easier said than done if unwritten rules set expectations that staff will perform some work after hours and on weekends.

Battle plan: To start your overtime strategizing, first identify who on your staff would be affected by the new salary threshold rule. Begin by making a list of all employees with administrative, executive and professional exemptions under the Fair Labor Standards Act. Rank the list according to...

To continue reading