October 24, 2019

New Overtime Rule

Category: Administration, Payroll

Posted by Beth Baum

Coming on January 1, 2020, there is a new federal salary threshold for exempt employees. The Department of Labor has raised the minimum salary threshold from $23,660 to $35,568 per year. What does this mean for you? Well, there are a few steps you should take to ensure you are in compliance with this new law:

1. Determine which of your staff members are exempt (salaried) and look at how much their current salary pay is.
2. If their salary is less than $35,568 per year ($684 per week), you will need to do one of two things:
   1. Increase their pay to meet the minimum requirements set by the law.
   2. Change their status from exempt to non-exempt, and begin paying them by the hour (which means paying overtime if they work more than 40 hours in one week).
3. Complete Personnel Action Notices’s with the necessary changes, and return them to Miller Management by December 15.

Click here for the PAN – Church or PAN – Non-profit.

We understand that while these steps are simple, putting them into action is not. If you need assistance or guidance through this process, please reach out to your Payroll Specialist. You may also contact Beth Baum, our HR Generalist, and she will be glad to help discuss your options.

View the article regarding overtime from the Department of Labor here.