This guide to the Federal Overtime Laws reviews the steps for regulatory compliance with the Department of Labor’s new Employment laws found in the Fair Labor Standards Act. The new rules were delayed in December and are pending a final date. Businesses should know how to prepare. Read this guide and know exactly what actions to take. The Federal Overtime Rule will affect an estimated 4.6 million workers.

1. GUIDE
P R E S E N T E D B Y
S W I P E C L O C K
FEDERAL
OVERTIME LAWS

2. FEDERAL OVERTIME LAWS
FAIR LABOR
STANDARDS ACT
*Intended to
provide employee
protection
Increases the
Salary Threshold
and defines
Exempt Employee
Duties
Salary
Threshold
updates &
Duties test
FEDERAL OVERTIME
RULE
EFFECTIVE
DECEMBER 1, 2016

3. $47,476
NEW SALARY THRESHOLD

4. THE OLD SALARY
THRESHOLD WAS $23,660.
4.6 MILLION EXEMPT
WORKERS FALL BELOW
THE NEW THRESHOLD.

5. DUTIES TESTFor Exempt Employees

6. 1.
PROFESSIONALS
Highly Skilled, Semi-Self
Employed or Highly Creative
Attorneys, Doctors, Dentists,
Teachers, Clergy, Innovators,
Actors, Composers Writers

7. 2.
EXECUTIVES &
MANAGERS
Business owners 20% or
more equity ownership and
employee of the business are
considered exempt

8. 01
02
03
EXECUTIVE EMPLOYEE
Primary Duty is to manage the Business,
division or subdivision of the
enterprise

9. 01
02
03
EXECUTIVE EMPLOYEE
Primary Duty is to manage the Business,
division or subdivision of the
enterprise
MANAGERS
­Manages 2 or more employees
­Primary duties are management duties
­ Have Decision Making Authority

10. 01
02
03
EXECUTIVE EMPLOYEE
Primary Duty is to manage the Business,
division or subdivision of the
enterprise
MANAGERS
­Manages 2 or more employees
­Primary duties are management duties
­ Have Decision Making Authority
DECISION MAKING
Has weight in decision making over
hiring/ firing, salary range, promotion, &
salary range

11. 01
02
03
EXECUTIVE EMPLOYEE
Primary Duty is to manage the Business,
division or subdivision of the
enterprise
MANAGERS
­Manages 2 or more employees
­Primary duties are management duties
­ Have Decision Making Authority
DECISION MAKING
Has weight in decision making over
hiring/ firing, salary range, promotion, &
salary range

12. MOST SHIFT
MANAGERS IN
RESTAURANTS AND
RETAIL WON'T PASS
THE DUTIES TEST.

13. 3.
ADMINISTRATORS
Some Examples
Include: Human Resources,
Payroll, Accounting, Finance,
Quality Control, Public
Relations, Computer
Networks, Internet Marketing,
Research, Data Base Admin,
Advertising, Insurance,
Procurement, Compliance

14. 01
02
03
ADMINISTRATIVE/ OFFICE
Non­Manual Work, Administrative or
Office Work Directly related to the
management, general business
operations, or management of business's
employees.

15. 01
02
03
ADMINISTRATIVE/ OFFICE
Non­Manual Work, Administrative or
Office Work Directly related to the
management, general business
operations, or management of business's
employees.
INDEPENDENT JUDGEMENT
Has authority to exercise judgement
about matters of significance related to
the business.

16. 01
02
03
ADMINISTRATIVE/ OFFICE
Non­Manual Work, Administrative or
Office Work Directly related to the
management, general business
operations, or management of business's
employees.
INDEPENDENT JUDGEMENT
Has authority to exercise judgement
about matters of significance related to
the business.
NOT CLERICAL
Ability to Make Decisions Free from
Immediate Supervision.
Their decisions can severely impact the
business.

17. 01
02
03
ADMINISTRATIVE/ OFFICE
Non­Manual Work, Administrative or
Office Work Directly related to the
management, general business
operations, or management of business's
employees.
INDEPENDENT JUDGEMENT
Has authority to exercise judgement
about matters of significance related to
the business.
NOT CLERICAL
Ability to Make Decisions Free from
Immediate Supervision.
Their decisions can severely impact the
business.

18. What Should Businesses
and Managers do about the
New Overtime Rule?

19. UNDERSTAND
THE
IMPORTANCE
OF THE FEDERAL OVERTIME LAWS

20. The Department of Labor
Increases Fines again for
Violations of the
Federal Overtime Law
$1,925 per violation
FINES &
PENALTIES
INCREASED

21. POOR
REPUTATION
FOR
COMPANIES
WITH
VIOLATIONS

22. UBER
McDonald's
WELLS FARGO
.

23. No Company is immune
from Bad Press & Bad
Reputation Risk

24. EXAMINE
ALL EXEMPT
EMPLOYEESCURRENTLY EARNING UNDER $ 47, 476

25. 01
02
03
INCREASE SALARY TO $47,476
If your employee makes around $45,000
or more, consider increasing their wages
and keeping them exempt.

26. 01
02
03
INCREASE SALARY TO $47,476
If your employee makes around $45,000
or more, consider increasing their wages
and keeping them exempt.
MOVE TO NON-EXEMPT
If your employee makes less, then
consider how many hours of overtime
they put in on a weekly average

27. 01
02
03
INCREASE SALARY TO $47,476
If your employee makes around $45,000
or more, consider increasing their wages
and keeping them exempt.
MOVE TO NON-EXEMPT
If your employee makes less, then
consider how many hours of overtime
they put in on a weekly average
OFF LOAD THEIR WORK LOAD
Can their workload be offset by
resigning tasks to exempt employees or
by hiring lower paid hourly employees?

28. 01
02
03
INCREASE SALARY TO $47,476
If your employee makes around $45,000
or more, consider increasing their wages
and keeping them exempt.
MOVE TO NON-EXEMPT
If your employee makes less, then
consider how many hours of overtime
they put in on a weekly average
OFF LOAD THEIR WORK LOAD
Can their workload be offset by
resigning tasks to exempt employees or
by hiring lower paid hourly employees?

29. Remember that the Exempt
Salary Threshold will adjust
every 3 years.
Can you afford to continue
raising wages to stay above
the new thresholds?

30. EDUCATE
MANAGERS &
EMPLOYEES
ABOUT THE NEW OVERTIME RULES

31. TRAIN, EDUCATED, INFORM
PROACTIVE IS BEST
Previously exempt
employees may
feel they are
being demoted to
hourly
Why do I have to
punch a clock?
Doesn't the
company trust me
anymore?
Prior approval
needed?
What is
allowed?
Exceptions?
MANAGERS TO FIELD
QUESTIONS
OUTLINE COMPANY' S
OVERTIME POLICY

32. TIMEKEEPING
SYSTEMSARE A COMPANY' S BEST DEFENSE

33. 01
02
03
AUTOMATICALLY TRACKS
Employee hours, Overtime hours, Paid
Time Off, and Sick Leave are
automatically tracked

34. 01
02
03
AUTOMATICALLY TRACKS
Employee hours, Overtime hours, Paid
Time Off, and Sick Leave are
automatically tracked
DECREASES RISK OF NON-
COMPLIANCE
By automatically recording overtime
hours and retaining records.

35. 01
02
03
AUTOMATICALLY TRACKS
Employee hours, Overtime hours, Paid
Time Off, and Sick Leave are
automatically tracked
DECREASES RISK OF NON-
COMPLIANCE
By automatically recording overtime
hours and retaining records.
ASSUMED GUILT BY DOL
The Department of Labor assumes guilt
when companies can't provide records,
or when records aren't complete.
Manuel time sheets are easily
lost/misplaced or fraudulently altered.

36. 01
02
03
AUTOMATICALLY TRACKS
Employee hours, Overtime hours, Paid
Time Off, and Sick Leave are
automatically tracked
DECREASES RISK OF NON-
COMPLIANCE
By automatically recording overtime
hours and retaining records.
ASSUMED GUILT BY DOL
The Department of Labor assumes guilt
when companies can't provide records,
or when records aren't complete.
Manuel time sheets are easily
lost/misplaced or fraudulently altered.

37. FOR MORE
INFORMATION
ON FEDERAL
OVERTIME LAWS
HTTP: / / BIT. LY/ 2IKUKMJ

38. FOR MORE
INFORMATION
ON AUTOMATED
TIMEKEEPING
WWW. SWIPECLOCK. COM

39. Written and Created by
Annemaria Duran
WELLS FARGO IMAGE CURTESY OF MIKE MOZART