Human Resources Consulting - Columbia SC

United States Department of Labor Releases the Final New Rules on Overtime Pay

On May 18, 2016, the U.S. Department of Labor (DOL) released the much anticipated final rules regarding who is and who is not eligible to be paid overtime. The new rules primarily affected the salary threshold which all employees must meet in order to be classified as “exempt” from being paid overtime.

The new salaried level is $47,476 per year or $913.00 per week (the current threshold is $23,660). This new threshold goes into effect for all employers on December 1, 2016. Any employer which has an employee who is making less than $47,476 per year, as of December 1, 2016, that employee must be reclassified to an hourly employee and paid on an hourly basis. If the employee works more than 40 hours within a one week period of time, the individual must be paid overtime at the rate of one and one half times his/her normal rate of pay.

The new rules also mandate that the salary level will automatically increase every three (3) years.

The DOL estimates that these changes will result in 4.2 million additional workers being eligible for overtime pay. Employers must quickly review those employees who are presently classified as exempt (not eligible for overtime pay) to determine if a salary adjustment is necessary or if the employee needs to be reclassified as hourly.

A company’s best defense against the potential expense and aggravation related to federal or state law violations is to proactively review and revise as needed their Human Resources policies, handbooks, hiring procedures, compensation, benefits, training programs, communications tools and other functions. The professionals of PHHR are ready to assist your organization maintain compliance with the latest state and federal mandates.

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Paul Hilton Human Resources Consulting works with our clients to insure that all required documentation is correct and sufficient to successfully defend against a claim to any unemployment compensation commission.

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Paul Hilton is a certified Human Resources Consultant, located in Columbia, SC.
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Paul Hilton, Human Resources Consulting, LLC
Columbia, South Carolina
Office: (803) 481-9533
Cell: (803) 305-8962 

Paul Hilton, Human Resources Consulting, LLC