The US Department of Labor has issued a new overtime rule that will be effective January 1, 2020, increasing the salary cutoff to $35,568/year (increased from $23,660). This means that employees must earn at least this amount and meet required duties tests in order to be considered exempt. Employees who are not exempt must be paid for all hours worked in a workweek and must be paid 1 1/2 times their regular hourly rates for hours worked in excess of 40 in a workweek.
All employers should spend time evaluating employee classifications to make sure classifications meet actual salary and duties tests to ensure employees are paid as required by law. Appointed clergy are considered exempt employees by definition. All non-clergy employee positions should be considered to make sure they are classified and paid in accordance with DOL requirements. Some considerations should include:
- How are current employees classified?
- Are any employees due overtime pay?
- Is overtime pay, if needed, included in the budget?
- Do job descriptions match what is actually required of the employee?
- Are required time records being kept for non-exempt employees?
The Society for Human Resource Management has developed a questionnaire to help employers evaluate the exempt classification status of each employee. Please review this questionnaire as well as the linked DOL resources in the questionnaire now to determine if any changes are needed to be in compliance with these new regulations.