Proposed Overtime Rule Gets Delayed Until Late 2016

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Proposed Overtime Rule Gets Delayed Until Late 2016

The Department of Labor (DOL) has delayed finalizing its ruling on employee overtime eligibility under the Fair Labor Standards Act (FLSA). Originally anticipated for the end of 2015, the DOL ruling is now set for late 2016 and may increase the number of employees eligible for overtime pay. This delay may yield employers less time from the final ruling to when it must go into effect – perhaps even half the 120-day review window of the last overtime change in 2004. Learn how you can prepare your organization for when the proposed overtime ruling occurs:

Audit Your Current Workforce

Review your current staff to determine which employees may be affected by changes in the overtime eligibility. This will likely include non-exempt workers with what could be interpreted as managerial duties. Currently, these workers aren’t required overtime pay if they make over $23,660, but if the threshold requirement goes up as expected, you want to know which areas of your staff will require changes.

Plan Ahead for Contingencies

Once you have an idea of how significant the overtime rule could be to your business, consider what options you’ll need to take. This may be changes in pay, duties, or scheduling. Although the specifics won’t be known until the ruling is finalized in late 2016, the more planning you can do ahead of time, the easier the transition will be within the effective deadline.

Supplement with Temporary Staffing

If your business is a prime candidate for being affected by the proposed overtime rule, temporary staffing can help reduce overtime costs during times of high demand. Rather than spending extra money on paying overtime (and risking overworking and burning out your employees), you can bring on temporary employees to help with the workload – without the commitment and for market value wages instead of time and a half.

Consider a Professional Employer Organization

A Professional Employer Organization (PEO) is a way to outsource administrative employee management tasks. If you’re concerned about federal regulations, hiring a PEO can help ensure your company’s compliance while also reducing the amount of work on your end. They can handle payroll and other administrations, including taxes, benefits, and claims, and give you peace of mind that your organization isn’t inadvertently in violation of complex regulations.

Today, Ethan Allen Workforce Solutions’ group of companies offers a full range of employment solutions including: direct placement, temporary staffing, recruitment process outsourcing and professional employer services. Contact a leader in Hudson Valley employment today to learn how we can help your company!

2016-01-22T16:07:24+00:00 January 22nd, 2016|Compensation, Personnel/HR Records, Recruiting & Employment|