Note: overtime reform is delayed indefinitely. If and when reforms continue, Nextep will continue to communicate with company leaders using these methods.
The rules that govern overtime pay have changed with an effective date of December 1, 2016. Here is how Nextep is working with business leaders to make the transition smooth, thorough, and timely so that our clients are in full compliance once the December 1 effective date occurs.
First, Nextep's dedicated human resources expert will communicate individually with clients to discuss the changes.
The Nextep HR consultant will run reports and assess current employees, their current salaries, and job requirements. This info will provide a clear picture of who may lose overtime exemption on December 1.
3. Duties Test
For anyone affected by the change, Nextep HR will view the job description and perform the Department of Labors duties test to evaluate whether the employee would qualify for overtime exemption based on his or her job duties.
4. Financial Implications
Nextep HR will determine the financial implications for the client and recommend changes to leaders. These changes could include giving certain employees small raises to maintain overtime exemption. Changes can also include new practices and procedures to help employees losing overtime exemption transition.
5. Implement Changes
Any adjustments will take time and training. They must also be carefully considered to ensure compliance and avoid any implied discrimination. Nextep HR will work closely with business leaders to implement changes as smoothly as possible.
For HR guidance in how your leaders can handle overtime reform at your company, please contact Nextep's HR team.