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Clear Staff Confusion About New Overtime Rule With 3 Tips

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Clear Staff Confusion About New Overtime Rule With 3 Tips

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Overtime rule

The Department of Labor’s new overtime rule took effect on July 1, and even though your practice had some time to prepare for it, your staff members may still be confused about the ramifications and the effect it’s had on them.

Check out three essential ways you can ease staff confusion about the implications surrounding the new overtime rule.

1. Explain the Salary Threshold

Now that the overtime rule is in effect, staff members who earn below $43,888 will automatically be eligible for overtime pay. This number will rise to $58,656 on January 1, 2025. This may create confusion at your office because an employe who earns $43,000 may suddenly start getting paid for overtime hours, while someone who makes $44,000 won’t. It’s illegal to prevent employees from discussing pay with one another, so it’s likely that your team members will eventually know that some colleagues are getting overtime pay.

You’ll want to make sure you thoroughly explain the new salary thresholds to all staff members so they understand what’s going on and can ask questions. If needed, have a labor attorney on-hand for a Q&A session so all of your staff members can get a firm understanding of why the changes have happened and how they work so your team doesn’t think you’re suddenly “playing favorites” or operating unfairly when paying overtime.

2. Examine Pay and Hours

If you need to suddenly start paying overtime to a lot of employees under the updated overtime rule, it’s probably a good time to take a look at what you’re paying your team and how often they’re working more than 40 hours on a weekly basis.

In some cases, you may want to raise some employees’ salaries if they’re right on the line of requiring overtime, or to carefully control the hours they work so you don’t go over budget on payroll due to overtime requirements.

3. Anticipate Repercussions for Non-Exempt Staff

Employees who earn below $43,888 will now be considered non-exempt staff members, which is why they’ll be eligible for overtime. Your practice is required to track working hours of all non-exempt staff members, so they’ll need a way to track their hours, either using software, timecards or another system.

This may also affect their eligibility for benefits, such as health insurance and paid time off — and all of these changes may impact staff morale. Some team members may not like the idea of clocking in and out, and they (and their families) may be seriously affected if their benefits are taken away. This should be taken into consideration when you think about whether to raise pay or not to ensure employees are considered exempt.

There’s no time to waste — you must master the overtime rules if you want to stay compliant. Let healthcare attorney Ariel Fenster, Esq., help. During her online training, Comply With Fast Approaching Changes to Overtime Pay Rules, she’ll share the plain-English strategies you must employ to stay compliant. Register today!


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