Overtime rule

Two separate lawsuits — from states and business groups — were filed Tuesday against the Department of Labor on its highly criticized rule.

Two separate lawsuits — from states and business groups — were filed Tuesday against the Department of Labor on its highly criticized rule.

The DOL’s new regulations take effect December 1, and employers across the country need to carefully review and modify their compensation.

Employers should take note of this ‘significant challenge' as salary threshold for exempt employees grows.

Advisers with this client base should take note of this ‘significant challenge’ as salary threshold for exempt employees grows.

The upcoming change to salary requirements to the overtime exemptions under the FLSA has garnered a lot of attention. However, even with a strong emphasis on the changes to the salary requirement, employers should not lose focus on the duties portion of the test.

With the new, increased salary requirements set to take effect later this year for exempt employees, many employers are asking how they might reduce their overtime obligations. One possible approach is the fluctuating workweek method of compensation.

Companies should immediately review their pay scales for employees and make adjustments where they see fit to either begin paying overtime or to raise salaries to correspond to the new change.

Employers are anticipating choppy waters with ACA, and also are slow to grapple with new overtime pay rules.

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