Employee Salary Rule

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At CultureIQ, we recognize that paying people fairly is monumental to the success of a company-- which is why we were excited to hear about the new overtime rule. Last month, On May 18, 2016, President Obama and Secretary Perez changed the way we work through the publication of the Department of Labor’s final rule updating the overtime regulations. This new law will extend overtime pay protections to over 4 million workers which will take effect within the first year. Workers everywhere can rejoice in the added compensation benefits as it will increase their earnings. While this is an important ruling for everyone, there are mixed feelings about the rule. Here’s what you need to know about the new law and how employers can use these new parameters …show more content…
Specifically, the Final Rule:
Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.
Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary …show more content…
The initial increases to the standard salary level (from $455 to $913 per week) and HCE total annual compensation requirement (from $100,000 to $134,004 per year) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.

Why it’s a great thing
Employers who embrace the new law can actually coach their teams on how to better make use of their time. Look at it this way, if your team cannot handle their workload in an 8-hour workday, you may want to rethink your strategy.

Use tech-- Employers can jump on the Millennial bandwagon by adopting tech into their work strategy. Partner with your tech-savvy team to find ways to use tech to streamline processes.
Cancel meetings-- In an article with FastCompany, tech giant, Asana skips meetings on Wednesdays so that their people can get their tasks done without interruption.
Assign a mentor-- If newbie employees are struggling with time management, have them partner with a senior worker. This way, the seasoned employee can help their newer counterpart on their productivity.

It’s how you look at
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