VirgilHR’s CEO, Jocelyn King, SHRM-SCP, along with Laura Donohoe, SHRM-SCP, CEO of EliteHRConnections, and Christine V. Walters, J.D., SHRM-SCP, SPHR, discuss the implications of the new DOL overtime rule changes, effective July 1, 2024, and the potential need to adjust employee classifications and compensation. The session focused on understanding the regulatory updates, specifically the criteria determining whether an employee should be classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA).

Key discussion points include:

1. Overview of Overtime Rule Changes: The webinar will begin with a detailed explanation of the new overtime regulations, highlighting the new threshold salary levels and duties tests used to determine exemption status.

2. Impact on Employee Classification: Attendees will learn how these changes might necessitate reclassifying certain employees from exempt to non-exempt status.

3. Salary Adjustments and Compliance: The discussion will emphasize the need for HR to review and potentially increase salaries of employees nearing the exemption threshold to maintain their exempt status or to comply with the new rules by reclassifying them as non-exempt.

4. Strategic Considerations for HR: The webinar will provide strategies for HR to ensure compliance while managing labor costs effectively. This included assessing job duties, evaluating the financial impact of salary increases versus potential overtime payments, and planning for changes in workforce management.

5. Legal and Practical Implications: Our experts will outline the legal implications of non-compliance, such as potential lawsuits and penalties. Practical advice will be given on how to implement changes smoothly, including communication strategies with affected employees.

The session concluded with a Q&A segment where HR professionals can seek clarification on the new law and share best practices. The webinar underscored the importance of proactive planning and thorough analysis in response to overtime rule changes to ensure compliance and fair employee compensation.