MENUMENU
  • FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR

  • LOGIN
  • SIGN UP FREE

HR Morning

MENUMENU
  • FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • More
    • Leadership & Strategy
    • Compensation
    • Staff Administration
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • Employee Services
    • Work Location
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans

What 94% of HR pros are doing to prepare for new OT regs

Jared Bilski
by Jared Bilski
November 6, 2015
2 minute read
  • SHARE ON

The DOL’s new overtime regs will make reviewing the classifications of exempt employees an absolute must for businesses everywhere. Luckily for most HR pros, this won’t be anything new.  
At least that’s what a recent SHRM study uncovered. The study asked 337 HR professionals whether they review if their employees are exempt from overtime, and an impressive 94% of HR pros reported that they did.
Granted, the frequency with which HR pros review workers’ overtime status varies greatly. Here’s the breakdown of how often employee-status is reviewed by HR:

  • When a position comes open (53%)
  • Annually (39%)
  • Monthly (2%), and
  • Never (2%).

If you haven’t done so already, you’ll probably want to do an in-house audit of all your exempt employees to see if they’ll still meet that classification when the DOL’s new regs take effect.
Under the DOL’s proposed regs, employees must earn $970 per week or $50,440 per year, figures based on the 40th percentile of weekly wages for full-time salaried workers, to be exempt from overtime.
The current threshold is $455 per week or $23,660 per year.
Once you’ve done the in-house audit, you’ll still want to review those classifications regularly but, as employment attorney Robert Boonin points out, you don’t have to go overboard with conducting reviews.
So what’s going overboard? Reviewing classifications on a monthly basis. As Boonin told SHRM, monthly reviews would be “overkill,” because:

“If less often periodic reviews are performed correctly and thoroughly, it will be unlikely that jobs will change greatly from month to month so as to change the outcome.”

What’s the fallout?

SHRM also asked HR pros the impact they expected the new regs to have on their company and found:

  • 76% of foresaw potential unbudgeted OT costs
  • 70% expected an increase in opportunities for employees to earn overtime
  • 61% saw the potential for less workplace and scheduling flexibility for employees, and
  • 42% said there would be potentially fewer opportunities for career advancement in the company.

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES

Keep Up To Date with the Latest HR News

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Sign up for a free HRMorning membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
HR Morning Logo
  • Facebook
  • Twitter
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • HR Technology
  • Performance Management
  • Leadership & Strategy
  • Compensation & Payroll
  • Policy & Culture
  • Staff Administration
  • Wellness & Safety
  • Staff Departure
  • Employee Services
  • Work Location
  • HR Career & Self-Care

HRMorning, part of the SuccessFuel Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Privacy Policy Terms of Service
Copyright © 2021 SuccessFuel

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

preloader