The Time to Assess Your Compensation Structure is Now

New Overtime Rule in Effect December 1, 2016
By Sarah Dahl
From Sarah Dahl at CDS CC, July 15, 2016: As we wrote about in the Cooperative Grocer earlier this year, effective December 1, 2016, there will be new rules in place affecting your salaried exempt employees.
 
If you have salaried employees currently making less than $913 per week ($47,476 annually), you will need to think through alternatives to stay in compliance with the new overtime rule. Some options include: 
  • Increasing their base salary to ensure they are receiving at least $913 per week.
  • Changing their status to hourly, including paying overtime for any hours worked over 40 in a week (vs. hours paid but not worked) 
  • Reducing affected staff's hourly base pay, so that with overtime payments their annual salary is not impacted
  • Making changes to your organizational structure, and/or delegating non-managerial work to hourly employees
  • Making up to 10% of their pay a non-discretionary quarterly bonus to increase their pay to at least $913/weekly
There is no one-size-fits-all solution to be in compliance with these new rules. You can see our resource for commonly asked questions, or to talk about what might be the best for your particular situation, please contact Sarah Dahl at SarahDahl@cdsconsulting.coop  or (608) 575-2199.