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New Overtime Rules and How They Apply to You

New Overtime Rules and How They Apply to You

Click here to read our whitepaper on effective strategies for FLSA regulations.


The U.S Department of Labor (DOL) announced the final ruling to increase overtime eligibility for citizens making less than $913 a week, or $47,476 annually. The new rule goes into effect December 1, 2016. Here are the questions your organization should be asking:

  • Which employees or positions are affected?
  • What are the strategies to handle these affected employees and positions?
  • How much will this cost?
  • What are the things we need to consider as exempt employees move to nonexempt?
  • How do we best communicate this to employees?
  • What is the best strategy for ensuring part-time employees are in compliance?
  • What are the unique implications to the healthcare industry?
  • Beyond the increased employee and overtime pay, what implications will face your organization indirectly?


Our Perspective

Overall, the final ruling will provide not only a challenge for organizations, but also an opportunity for a broader, proactive process. Forward-thinking organizations will see it as a chance to take a systematic approach and broadly review their workforce, its structure, and how employees are rewarded. Carefully reviewing job descriptions and actual employee duties are against “duties tests” for various exemption categories will be critical, as will be effective and timely communication.

The best approach for an organization is likely to be a tailored combination of strategies suited to the goals and approach of the unique organization. If the process is tailored to the organization, through a review of the workforce, scheduling and reward programs, it is possible that the process will actually provide a return to the organization through actual dollars saved, improved employee engagement, and/or higher quality work outcomes.


Click here to read our whitepaper on effective strategies for FLSA regulations.

Or call us at 877-241-6273.


Gallagher Integrated Can Help

Integrated Healthcare Strategies (Gallagher Integrated), a division of Gallagher benefit Services, Inc. can lead the data collection and identify impacted employees and job classifications, then perform the cost analysis and review, working with your organization on communication and implementation assistance.