Mercer | Federal Labor Standards Act and Your Organization

Workforce Rewards

How could the FLSA Overtime Rule Affect Your Organization

The Department of Labor’s (DOL) proposed rule has been finalized. The most significant change is effectively doubling the OT salary threshold from $455/week to $913/week ($47,476). 4.2 million more workers could be overtime-eligible starting December 1st, 2016. This has major implications for financials, business objectives, and compliance, as well as employee satisfaction. Will your organization be ready?

Questions to Consider

  • Have you determined the impact of the new rules on your organization?
  • Many supervisors and assistant managers will be impacted. This creates compression and a potential ripple effect all the way down to entry-level employees. Will your supervisors and other employees above the Threshold require increases to compensation to maintain sufficient differentiation?
  • The DOL is consistently increasing investigative staff; 2016 class actions are expected to hit record highs spurred by revised regulations. Are you sure you’re in compliance with existing rules?
  • Have you started educating your employees on potential changes?

Webcast: FLSA New Overtime Rule

How Should You Address the Changes?

Compliance with the new rule has significant financial and business implications as well the potential to change employee satisfaction levels.  

Contact us for help forming a strategy that addresses all of the impacts.

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