You've probably heard a lot of rumblings lately about new overtime rules under the Fair Labor Standards Act (FLSA).
You have not, we're guessing, read the 300-page document outlining these proposed rule changes entitled "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees."
These changes could, however, impact you as a small business owner, and you'll want to be prepared, just like you would with any change in regulations.
With most feeling that proposed regulations will be issued sooner rather than later, it is a good idea for companies to prepare in the best way possible.
The more prepared you are for upcoming changes the easier it will be to adjust your business accordingly. A Society for Human Resource Management article goes on to share five steps for preparing for proposed revised overtime regulations:
Review current job descriptions to ensure they accurately depict job responsibilities
Identify exempt and non-exempt positions, with a focus on those that may be in the "gray area."
Make sure supervisors and managers are aware of these proposed regulations. Furthermore, prepare them for the changes that are sure to come.
Develop a contingency plan for the changes you will make in the event of an increased minimum salary threshold.
Devise a strategy for establishing pay rates and work schedules if an employee is converted from exempt to nonexempt status.
In a perfect world, everything would stay the same regarding business rules and regulations from one year to the next. In the real world, this never happens. As a business owner, it is imperative to stay current with any and all changes that will impact your organization. Failing to do so could cause you a lot of trouble down the road.