The U.S. Department of Labor (DOL) is proposing significant changes to overtime regulations, and employers must be prepared for potential shifts in workforce dynamics. The proposed rule could extend overtime protections to around 3.6 million additional workers under the Fair Labor Standards Act (FLSA). Here's what you need to know:
💼 Potential Impact: This rule change is expected to substantially increase labor costs, especially in industries like education, retail, and food service. Employers may need to consider salary adjustments for employees near the new threshold.
🛡️ Legal Challenges: Legal challenges are anticipated on several fronts, including whether the DOL exceeded its statutory mandate and the constitutionality of the proposed salary threshold and automatic increases.
🗺️ State-Level Considerations: HR professionals should also be aware of potential changes in state overtime laws, as some states have more stringent rules than federal requirements.
How Can HCM Unlocked Help?
Navigating these changes requires careful planning and proactive action. HCM Unlocked can assist your organization by analyzing your exempt workforce, advising on salary adjustments and implementing necessary changes to payroll. Stay ahead of the curve and ensure compliance. Now is the time to start the planning process. Reach out to us today for expert guidance and support. Let us help.📊🔒