For 2020 there is expected to be changes to the overtime rules. You will have only 60 days to comply once they are implemented. The largest change will be in who qualifies for overtime pay. To be prepared, you must have a solid knowledge of the current rules.

Here is a overview:

Current overtime pay rules exempt employees are not eligible for overtime pay under the FLSA. They are typically executive, administrative or professional employees.

Example: mostly white-collar jobs. Non-exempt employees must be paid overtime pay for each hour worked over 40 hours in the workweek. Currently, a non-exempt employee is generally one who is paid less than $455 a week ($23,660 a year), is paid on an hourly basis (i.e., is not salaried), and does not perform duties typical of those performed by exempt employees.

Proposed overtime pay rules:

The biggest possible change is a boost in the standard salary level to $679 per week ($35,308 annually) for employees entitled to overtime. Above this salary level, eligibility for overtime will vary based on job duties. The goal is to increase the number of employees entitled to overtime pay—and to sharpen the dividing line between exempt and non-exempt employees.

Caution: These thresholds have changed twice since they were first proposed and may change again.

How to prepare:

Step 1: The first step is to make sure that your organization is fully compliant with the current rules by conducting an audit of your workforce, as follows:

  1. Are all your employees properly classified as exempt or non-exempt under current rules—and are they being paid accordingly?
  2. Are all non-exempt employees accurately tracking all hours worked?
  3. Do non-exempt employees know that they are never allowed to work off the clock?
  4. . Do you have a “salary basis policy” that clearly spells out the very limited circumstances under which a deduction may be made to an exempt employee’s salary?
  5. Do you have written policies that give all employees instructions on how to report possible errors in their pay? Address information gaps or mistakes promptly.

Step 2: You will have only 60 days to comply with any new rule. To be ready, your company should use the next several months to prepare for prompt compliance:

  • Evaluate every job description and compare it to what the actual job requires.
  • Determine the average hours worked in every position. n Conduct an analysis of current payroll categories and data—such as who is salaried and who is hourly, n Identify employees who might be impacted by the change

Example: those who fall into the general areas of the proposed thresholds, Can hourly employees’ work be kept at or below 40 hours per workweek if needed? Would it be less costly to increase certain employees’ salaries to keep them exempt —and how would coworkers view this change?