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Many organizations across the country, including associations, are preparing for a surge in personnel costs as they prepare for the Obama administration’s overhaul to the Department of Labor Overtime Rule. According to a letter from the Congress to the Secretary of Labor, the Labor Department's proposal, due to be released in final form in July, would more than double the salary threshold to $50,440 per year, up from $23,660. With implementation of this rule, about five million workers would become newly eligible for overtime pay. In addition, the minimum salary would automatically increase each year to match the 40th percentile of the average salary earned by full-time employees in the United States.
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The Department of Labor released a proposed rule last summer that would require employers to pay overtime wages to employees making $50,440 or less per year, which would be a 113 percent increase over the current threshold.
Numerous organizations, including MSAE, submitted comments on the proposed rule to DOL last year. MSAE reported that the the new rule would adversely affect many nonprofit organizations. To contain payroll costs from increased overtime obligations, employers would have to either lay off employees or exclude reclassified employees from telework and career growth opportunities outside of core business hours.
An employment handbook is a critical tool for communicating to employees. It provides employees one place to get everything they need to know about their employment. By clearly laying out what the organization expects of them as well as what they can expect from the organization, it lays the groundwork for an open, positive work relationship.
image from: littler.com