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Overtime rules and Rhode Island admin jobs

Posted on June 1, 2016

New overtime rules enacted by the Department of Labor are helping everyone to focus on Rhode Island admin jobs, among others.

The new changes ┬ádouble the salary threshold for “white collar” exemptions from the current minimum of $455 per week, or $23,660 a year, to $913 per week, or $47,476 annually.

The updated rules also increase the minimum salary of highly compensated employees from $100,000 per year to $134,004 per year and establish a mechanism for automatically updating the salary and compensation levels for exempt employees every three years.

The final rules, which will take effect on December 1, 2016, also allow employers to use nondiscretionary bonuses and incentive payments to satisfy up to 10 percent of the new standard salary level. They do not make any changes to the duties test for executive, administrative and professional employees.

Many employers already struggle with overtime eligibility, as well as overtime costs. These rule changes affect wage and hour compliance for businesses of all sizes and can have a significant impact on their labor costs,” said Tara Wolckenhauer, division vice president of Human Resources at ADP.

“While employers have more than six months to prepare, it’s vital they make sure that they’re properly classifying and paying employees, and tracking time accurately as soon as possible.”

“With such a significant increase in the number of employees eligible for overtime, it’s now more important than ever for companies to examine their time and labor management systems and evaluate whether they have the tools they need to simplify compliance and control costs,” said Tammy McCutchen, principal at Littler Mendelson and former administrator of the DOL’s wage and hour division.

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