Podcast: What the Historic New Overtime Rules Mean for HR

Hosted by: David Weisenfeld

The Department of Labor's recent announcement that the minimum salary for overtime-exempt employees will roughly double from $23,660 to $47,476 is attracting nationwide attention. While the new Fair Labor Standards Act (FLSA) regulations do not take effect until December 1, 2016, Tammy McCutchen says employers that do not start complying now will be at significant risk.

McCutchen, one of the nation's leading authorities on wage and hour laws, is an employment attorney with Littler Mendelson and managing director of ComplianceHR. While an increase in the minimum salary was a long time in coming, McCutchen thinks the DOL has hiked the minimum figure "way too high," saying it will cause a lot of disruption in lower-profit industries like restaurant and retail, especially in the South. She also says the new rules could force some nonprofits to reduce their services.

What the Historic New Overtime Pay Rules Mean for HR

June 13, 2016

McCutchen adds that employers will have to look at their total compensation package to keep their labor costs the same as they are today. She explains that they may need a different mix between base pay, overtime and bonuses to ensure that happens. "For employees earning just below $47,500, an increase might be a cheaper option," says McCutchen.

For more of McCutchen's insights about the new overtime pay rules, listen to this podcast and her webinar covering these issues.

Additional Resources

Plan for the New FLSA Overtime Rules

DOL's Final Overtime Rule: HR's Critical Overtime Steps for December 1st