New Final OT Rule: What Businesses Must Know about Compliance

Paychex THRIVE, a Business Podcast

With the U.S. DOL's New Overtime Rule taking effect July 1, FLSA-covered employers across the country are subject to the rule's updated salary thresholds for Executive, Administrative, and Professional white-collar exemptions and HCE employees. The DOL is, however, temporarily restrained from enforcing the rule against the state of Texas, as an employer, after a federal district court issued a preliminary injunction. Tammy Tyler, Employment Law Compliance Manager of Compliance Risk at Paychex, shares insights on the rule and how employers may respond, including how communication and training are essential.

Topics Include:

00:00:00: Episode Preview

00:01:00: Introduction of Tammy Tyler

00:01:21: New Overtime Rule in effect

00:01:41: Explaining the new rule

00:04:18: Changes in amount of salary threshold for OT Rule

00:05:40: Salary threshold is aper-week basis

00:06:34: Significant and additional increase to threshold coming Jan. 1

00:07:39: Which employees does this rule actually impact?

00:09:37: Consider a workplace policy on overtime policy

00:11:07: Bonus and other remuneration – what impacts do they have?

00:12:18: Why tracking time for nonexempt employees is crucial

00:13:10: Negative outcomes of noncompliance

00:14:05: Actions businesses can take to ease the transition

00:15:26: Wrap-up and thank you

DISCLAIMER:
The information presented in this podcast, and that is further provided by the presenter, should not be considered legal or accounting advice, and should not substitute for legal, accounting, or other professional advice in which the facts and circumstances may warrant. We encourage you to consult legal counsel as it pertains to your own unique situation(s) and/or with any specific legal questions you may have.