In the new Legal Forum Column, William J. Kishman discussed the new overtime rules from the DOL. Read his advice below and don’t miss our monthly Legal Forum Column in Louisville Business First.
As an employer, what do I need to know about the U.S. Department of Labor’s new overtime rules?
Any day now, the DOL will release a new rule increasing the number of employees entitled to overtime pay. Under this new rule, employers will need to pay employees significantly more in order to treat them as “exempt” from overtime pay requirements. (The rule will set forth the specific new pay level required.) The DOL also will make this new pay level adjust annually, to track inflation.
There are three steps employers can take to prepare. First, they should watch for the new rule and, when it is issued, make sure they understand its requirements. Second, after the DOL issues the new rule, they should audit their pay practices. Third, employers should consider offering employees arbitration agreements with class or collective action waivers, which can “nip in the bud” costly wage and hour lawsuits.