Planning ahead for the new DOL Final Rule

 
The U.S. Department of Labor’s new Final Rule on overtime goes into effect on July 1, 2024, raising the salary thresholds for exempt employees under the Fair Labor Standards Act (FLSA). Employers must take action to ensure compliance. This webinar covers the key changes and strategies for managing compliance effectively.

Overview of the DOL Final Rule:
- The rule increases the salary thresholds for exempt employees:
- Automatic updates to salary thresholds will occur every three years.

Employer Compliance Strategies:
- Identify affected employees who fall below the new salary thresholds.
- Decide whether to increase salaries to maintain exempt status or reclassify employees as nonexempt and pay overtime.
- Consider pay equity and administrative challenges when making salary adjustments.
- Employers must monitor hours, enforce timekeeping rules, and ensure compliance with state-specific regulations (e.g., meal and rest breaks in California).
- Impact on Industries: The rule will significantly affect sectors such as hospitality, healthcare, finance, retail, nonprofits, and public sector organizations.

How TCP Software Can Help:
- TCP provides automated time tracking solutions to control overtime costs and ensure compliance.
- Offers multiple ways for employees to track time, including web-based, mobile app, and physical time clocks.
- Provides real-time reporting, overtime forecasting, and payroll integration.
- Ensures compliance with state and federal regulations by automating time and attendance tracking.

Key Q&A Topics Addressed:
- The rule does not apply to teachers and other exempt professionals such as doctors.
- Employers must carefully consider independent contractor classification to avoid misclassification penalties.
- Organizations can implement hourly plus overtime pay structures to comply with the rule without raising salaries.
- Fire departments and public sector employers have special overtime rules under the FLSA.
- The webinar emphasized that employers must act now to prepare for the new rule, update policies, and leverage technology like TCP’s time-tracking solutions to streamline compliance and payroll administration.