“On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. This long-awaited update will result in a meaningful boost to many workers’ wallets, and will go a long way toward realizing President Obama’s commitment to ensuring every worker is compensated fairly for their hard work.”

Employers across the nation should take heed. While this new legislation focuses on protections for administrative and professional workers, it could potentially affect operating models that incorporate performance measures, productivity targets, staff levels, compensation structures, as well as potentially adjusting production expectations. Employers should also consider the amount of organizational change required to adjust to these changes and not only its impact to its finances.

Check out our Linkedin post for the full details.

Source:
United States Department of Labor - https://www.dol.gov/whd/overtime/final2016/