Overtime Changes Set to Take Effect in Four Months
Saturday, August 6, 2016
Posted by: Jennifer Addington
Changes Set to Take Effect in Four
With rule changes looming, we are pleased to bring you news
on the new overtime rules. Our friends at Wimberly and Lawson have developed a
formula to help identify a budget-neutral conversion from salaried exempt pay
plan to salaried non-exempt plus half-time overtime plan. This
tool will not only help you calculate new salaries for your employees, but also
help you explain that you are making every effort to ensure that this mandatory
conversion does not result in less money in their pocket each week.
here for the bulletin with the formula and other useful information.
From AmericanHort, comes an update
on a bill meant to soften the blow of the pending changes.
Rep. Kurt Schrader (D-OR), a
long-standing friend and champion of the horticulture industry, has introduced
a bill that would partially address employer concerns surrounding the
Department of Labor's (DOL) new overtime changes, which take effect December
Reform and Enhancement Act, H.R.5813, would more modestly increase the
current $23,660 "white collar exemption" minimum salary threshold to
$35,984 on December 1. Further increases would be phased in over the next 3
years, eventually bringing the threshold to the level established under the new
DOL rule ($47,476) on December 1, 2019. The bill would also eliminate the
automatic indexing that is part of the DOL rule; however, it would retain the
authority of the Secretary of Labor to go through rulemaking to update the
threshold in the future.
AmericanHort, the National Christmas Tree
Association, and many of our state association Lighthouse grassroots program
partners have endorsed Rep. Schrader's bill. However, the path forward is
uncertain given the few September days Congress will be in session, and
election dynamics. Stay tuned for updates and calls to action.