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New Overtime Rule Is Almost Here

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On Dec. 1, many more salaried workers may become eligible for the federal overtime premium. Under a new Fair Labor Standards Act regulation, some employees who make less than $47,476 will no longer qualify for exemption from overtime pay.

To prepare, employers should consider:

– Implementing a time clock system to track hours worked.

– Revisiting criteria for employees to qualify for overtime exemption.

– Converting compensation from salaried to hourly in order to calculate overtime wages for newly eligible employees.

– Meeting with affected employees to explain why the changes are occurring.

Review these additional steps to comply with the new regulations.

Steve Bernstein, Fisher Phillips

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