What you should do now to prepare for the proposed overtime rule.

Now that the Department of Labor's new proposed rule raising the white-collar overtime salary threshold had been published in the Federal Register (see "In the News" on page 1), the clock has started ticking for employers to prepare for its eventual enactment.

There's no telling for sure when the rule will take effect. A 60-day public comment period ends Nov. 7, which means a final rule is unlikely to be ready before the end of the year. Plus, the proposed rule may face legal challenges, which could delay implementation well into 2024.

Steps employers should take

For now, however, employers should plan to respond to an overtime salary threshold of at least $55,068 per year ($1,059 per week). Here are the steps you should take right now:

* Review your list of exempt employees. Take a close look at each employee currently classified as exempt, paying particular attention to administrative, executive, professional and highly compensated employee classified workers. (See below for more on HCEs.) These are the employees most affected by the proposed rules.

* Review exempt workers' pay. How many earn $55,068 or less per year? Those are the employees who will qualify for overtime pay when they work more than 40 hours in a workweek.

* Determine whether to raise exempt employee pay. Raising employees' pay to more than $55,068 per year will preserve their exempt status, making them ineligible for overtime pay. Remember to estimate how much time exempt employees currently put in. If they regularly work more than 40 hours per week, calculate what your overtime costs would be if you converted them to hourly workers and they continue working the same hours. If they don't typically work more than 40 hours per week, it may be most cost-effective to convert them to nonexempt employees. (If you do that, ensure the "new" position no longer meets the duties tests that define Fair Labor Standards Act exemptions.) On the other hand, if they work long hours...