• FREE RESOURCES
        • Accounts Payable
          Finally! The trick to securing greater T&E compliance
          Benefits
          Rooting out folks who don’t belong on your health plan: A 6-point dependent audit checklist
          IT
          3 costly misconceptions about biz email compromise
          Credit and Collections
          Collecting via email: 4 must-make moves in your subject line
          Accounts Payable
          5 Tough-to-spot signs that an invoice is fake
  • PREMIUM CONTENT
        • Staff management
          120 Proven Communications Tips for Today’s CFO
        • Payroll
          Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits
          Accounts Payable
          T&E Best Practices: Complete Guide to Ensure Compliance
          Payroll
          Payroll Best Practices: 4 Ways to Save Time and Money
        • Staff management
          Email Best Practices: A 6-Question Quiz
          Staff management
          Innovative Communications Strategies: An Email Case Study
          Staff management
          A 5-part Framework for Successful Workplace Communications
        • SEE MORE
          PREMIUM RESOURCES
  • CORONAVIRUS RESOURCES
  • LOGIN
  • SIGN UP FREE

CFO Daily News

  • FREE RESOURCES
        • Accounts Payable
          Finally! The trick to securing greater T&E compliance
          Benefits
          Rooting out folks who don’t belong on your health plan: A 6-point dependent audit checklist
          IT
          3 costly misconceptions about biz email compromise
          Credit and Collections
          Collecting via email: 4 must-make moves in your subject line
          Accounts Payable
          5 Tough-to-spot signs that an invoice is fake
  • PREMIUM CONTENT
        • Staff management
          120 Proven Communications Tips for Today’s CFO
        • Payroll
          Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits
          Accounts Payable
          T&E Best Practices: Complete Guide to Ensure Compliance
          Payroll
          Payroll Best Practices: 4 Ways to Save Time and Money
        • Staff management
          Email Best Practices: A 6-Question Quiz
          Staff management
          Innovative Communications Strategies: An Email Case Study
          Staff management
          A 5-part Framework for Successful Workplace Communications
        • SEE MORE
          PREMIUM RESOURCES
  • CORONAVIRUS RESOURCES
  • Accounts Payable
  • Credit and Collections
  • Payroll
  • Accounting
  • Benefits
  • Finance Technology
  • More
    • Employment Law
    • Strategy
    • Policy and Culture
    • Fraud
    • Payments and Transactions
    • Budgeting and Forecasting
    • Banking
    • Staff Management
    • Cost Control
    • Supply Chain
    • IT

New overtime rules coming up fast: Your best ways to prepare now

Jennifer Azara
by Jennifer Azara
January 18, 2019
  • Accounting
  • Payroll
2 minute read
  • SHARE ON

Get ready: Your company will soon be working with a new salary threshold for overtime eligibility.

The Department of Labor (DOL) just sent a draft of its Notice of Proposed Rulemaking to the White House.

That’s the final step before it gets published in the Federal Register for us all to see what’s in store.

You can expect that in March. But you certainly don’t want to wait until then to get the ball rolling. Many of your peers were caught unprepared the last go-around.

And insiders have already started predicting what the threshold will land at.

That can give you a jump-start on your compliance so it’s not so disruptive when the new rules come out.

Here’s what you need to know.

Half of employees may be eligible

Again, nothing’s official just yet, but insiders from several sources believe the DOL will set the salary threshold in the low- to mid-$30,000 range.

While that would be a decent increase from the current $23,660 threshold, it’s far from the $47,476 from 2016’s final rule. And it’s better than some a few others have predicted.

But even those additional few thousand dollars will have a substantial impact on how much your company pays in overtime. In 2015, the Social Security Administration reported that more than half (51%) of Americans earn less than $30,000 a year.

That would put a large proportion of the folks on your payroll in that bucket.

3 moves to make now

Without a definitive number, what can you do now? Plenty. Take these steps in the coming weeks to start preparing:

  1. Get a gauge of who may move into OT-eligible territory. Start by having Payroll run reports of everyone who earns between the current $23,660 threshold and $30,000, $32,500 and maybe even $35,000, since we don’t have an official number just yet. At least you’ll start to get a feel for just how many more people you could be dealing with.
  2. Restart that conversation. In the coming weeks you and the rest of the C-suite will want to revisit how you’re going to handle employees who will soon fall under this new threshold, whether that’s bump up pay so employees won’t land in that new bucket or adjusting workloads so less overtime’s required. Some of these decisions may be on a case-by-case basis, but you’ll want to get your options laid out for now.
  3. Prep for a flood of employee questions. You know the minute the proposed rules hit the news, employees are going to flood you with questions. The time to prepare responses is now so when folks start asking, you and your team will have answers, even if you don’t have everything ironed out just yet.

Stay tuned. CFO Daily News will update you the second the proposed rules get released.

Jennifer Azara
Jennifer Azara
Jennifer, a member of the CFO Daily News staff, has covered business and finance for more than 22 years. She has written for CFOs, credit and collections professionals and accounts payable practitioners and has spoken at industry conferences on sales and use tax compliance.

Keep Up To Date with the Latest Finance News

With CFO Daily News arriving in your inbox, you will never miss critical stories on accounting, benefits, payroll & employment law strategies.

Sign up for a free CFO Daily News membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
CFO Daily News Logo
  • ABOUT CFO DAILY NEWS
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Accounting
  • Benefits
  • Payroll
  • Policy and Culture
  • Employment Law
  • Fraud
  • Finance Technology
  • Accounts Payable
  • Credit and Collections
  • Strategy
  • Payments and Transactions
  • Budgeting and Forecasting
  • Banking
  • Staff Management
  • Cost Control
  • Supply Chain
  • IT

CFO Daily News, part of the SuccessFuel Network, provides the latest Finance and employment law news for Finance professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, CFO Daily News delivers actionable insights, helping Finance execs understand what Finance 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

preloader