With the Dec. 1 compliance date quickly approaching, businesses have little time to evaluate employees’ exempt status, update overtime policies and make the appropriate payroll adjustments.
The House of Representatives passed the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act (H.R. 6094), which would delay the implementation of the new rule until June 1, 2017; however, businesses are encouraged to address the changes right now. There is no guarantee that the delay would pass the Senate or that it would survive a presidential veto.
While the potential for the 2016 elections to affect some portions of the overtime changes, businesses are encouraged to prepare now. Willful violation penalties include potential fines of $10,000 if convicted criminally and $1,100 civil penalties of $1,100 per violation.
Assess your level of risk by identifying which changes must be made and how the new rule will impact your business.