Payroll

Five steps for tackling the new US overtime ruling

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by Pamela Lachaussie

I was recently asked to write a piece for the Global Payroll Association on the impact the US overtime ruling will have when it comes into practice on 1 December 2016 – in less than two months.

In May this year, the US Department of Labor mandated that overtime pay protections would automatically be extended to cover more than four million salaried workers as of 1 December 2016.

However, with just a matter of weeks to go before the deadline there are still nuances in the legislation and questions about who will be affected!

Either way, it is vital that you are ready for the changes The core of my article covers the Five Steps for Tackling the new US overtime ruling.

The full article can be found here, but in summary;

The Five Steps for successfully aligning to the new US overtime ruling are as follows:

1. Understand the overtime ruling!
2. Establish what needs doing
3. Explore your options
o Take action
o Review salaries to maintain existing exemptions
o Pay current salaries plus overtime for more than 40 hours of work per week
o Reorganize workloads, adjust schedules or spread work hours
o Adjust wages
4. Put in place the tools and apps to make this happen
5. Use software to help