The present minimum hourly / salary minimums for exemption from overtime are expected to substantially change this week as new federal overtime rules are released. Presently, a managerial, executive or professional worker who earns more than $23,660 annually could be exempted from overtime pay if they work more than 40 hours in a work week. The Department of Labor (DOL) has proposed and is expected to release new guidelines this week that will substantially change compensation for millions of American workers.
While the new overtime rules may not take effect for a few months after publication, the targeted increases in the minimum exemption rate is expected to affect more than 5 million Americans. How will this affect business as we know it? It may require San Diego employers to convert salaried employees to an hourly basis, requiring them to punch a time clock and adhere to a 40 hour work week.
The proposed changes also present logistical challenges for San Diego employers. Will your company be forced to limit access to company systems including e-mail and voicemail after hours? Will new policies regarding written approval from company management be required to limit employer’s exposure to unpaid overtime allegations and litigation? The “lawyers for employers” at the Watkins Firm have specific strategies to protect our clients and limit the ability of a present (or in the future, those who have left employ) to assert unpaid overtime claims.
This will require extensive changes to all employment-related documents including:
- Employee Handbook
- Employment Contracts
- Policies and Procedures
- Time Reporting Policies
- Management Procedural Guidelines
We will continue to monitor developments throughout the week, and provide the up-to-the-moment advice our clients depend upon. If you are a San Diego area employer, and are concerned about new federal overtime rules and how they will affect your present and future operations we invite you to contact us for a free and substantive consultation at 858-535-1511.