Less than two years after the new $35,568 overtime threshold went into effect, the feds are reviewing that number again.
And spoiler-alert: Your company will likely have many more overtime-eligible employees.
Labor Secretary Marty Walsh recently said that the Department of Labor is reviewing the present overtime eligibility threshold.
Don’t count on a tiny increase – Walsh mentioned the current number is “definitely” too low.
This likely won’t be a one-and-done proposition for employers, either: The Labor Secretary views regular and automatic updates to the OT threshold as necessary.
What to do now to prepare for new overtime threshold
Considering how large the change looms, no company can afford to wait to start acting.
A former DOL administrator’s advice: Start looking at your company’s worker classifications as soon as the proposed rules come out.
If you wait until the final rules, you likely won’t have enough time to make all the necessary changes.
For now, you want to get Payroll running reports with different scenarios to see how much of your workforce will be impacted if the threshold gets raised by $10,000, $20,000, $30,000, etc.
And stay tuned. CFO Daily News will alert you the minute the new number comes out.