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National Restaurant Association - 4 things you need to know about overtime. Now.

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4 things you need to know about overtime. Now.

Labor experts say the Department of Labor’s overtime rule will take effect Dec. 1, despite Donald Trump’s win in the presidential election.

A National Restaurant Association webinar recently addressed lingering questions on the rule before compliance begins next month. Shannon Meade, the NRA’s director of labor and workforce, moderated the session, which featured Alex Passantino, partner at Seyfarth Shaw and former acting administrator of the DOL’s Wage and Hour Division.

“We’ve had a lot of questions about what President-elect Trump will do on the overtime rule, but it’s really to be determined,” Meade said. “We’re advising our members to get into compliance with the rule given the impending effective date of Dec. 1t

The final overtime rule, which was published in May, drastically increases the salary threshold for exempt employees, from $23,660 to $47,476 annually. The DOL rule will automatically increase the salary threshold every three years, starting Jan. 1, 2020.

Meade said the NRA is continuing to ask lawmakers to modify or delay the rule. Congress starts a “lame duck” session this week but it is unknown whether they’ll act on the overtime issue before the Dec. 1 implementation date. On the legal front, a federal district court in Texas will hold a hearing Nov. 16 on an emergency request to stay he rule until the court can weigh the merits of the two legal challenges to the rule itself. It’s not known how soon the court could rule on either the injunction request or the cases, or if a new White House could step in to rework the rule ‑ either on its own or in coordination with the next Congress.

Here are four important things to know:

  1. Keep your eye on Dec. 1. Despite challenges to the rule, including pending bills in the House and Senate and the litigation in Texas, compliance is expected to begin on the planned date.
     
  2. The salary level for exempt employees is going up. As of Dec. 1, exempt executive, administrative and professional employees must earn an annual salary of at least $47,476, or $913 per week. Nonexempt employees must be paid 1.5 times the “regular rate of pay” for all hours worked over 40 hours per workweek.
     
  3. Nondiscretionary bonuses, incentives, and commissions may satisfy up to 10 percent of the salary requirement, but must be paid at least quarterly.
     
  4. Perform accurate recordkeeping and revise job descriptions. To avoid potential wage and hour lawsuits, keep track of the hours that nonexempt employees work and their rates of pay. And, to the extent possible, have nonexempt employees sign off on their time sheets. Also, revise job descriptions for your reclassified employees.


    Listen to the entire overtime webinar and learn what you need to know.
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