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That was a terribly confusing news story you exposed for us to check out! Almost every quote from the DOL official cited in the TV news article link is either wrong or highly misleading. Scary.

Thanks for the important alert, Margaret.

The DOL estimates that it should take businesses about one hour to review data and ensure that their companies are compliant with the new rules. But some employers are taking issue with that estimate.


As Mark Twain said: If you don't read a newspaper you are uninformed. If you do read a newspaper you are misinformed.

Even the SHRM article is misleading as it states
"On Dec. 1, the federal annual salary threshold for employees exempt from overtime pay will double, increasing to $47,476 from $23,660. Employees who make less than the threshold must be paid time-and-a-half for any hours worked beyond the 40-hour workweek. If employers want workers earning below the threshold to remain exempt from overtime pay, they must bump these workers' salaries to at least $47,476."

While it is true that employees who are considered nonexempt must be paid time and a half, a nonexempt employee paid by salary has all hours worked built into their base salary. Their salary does not change based on the quality or quantity of work.

Therefore, employees who are paid salaried nonexempt do not have to be paid additional time and a half for any hours worked over 40. They only need to be paid the additional "half-time".

I have not seen this discussed. It is perhaps not a common pay status, but it exists and is an alternative to switching to hourly pay. There are pros and cons to both employees and employers.

Try explaining that to the masses, especially when you through in vacation or holiday time.

That "fluctuating workweek" option that Karen references is a highly problematic exception closely monitored by the Feds and fraught with potential pitfalls. Not a routine practice, it is only permitted under rare but very specific conditions, as I understand it. Worth exploring, but be cautious!

Respectfully, I do not agree with Karen's comments. I don't think Karen was referring to the fluctuating work week exception.

Nonexempt salaried, a very common group of employees, must be paid 1.5x for hours worked over 40 in a workweek, just like hourly, and subject to state laws.

Perhaps Ann Bares could comment here to add some weight.


While federal law allows employers to use the fluctuating workweek method, the same may not be true in your state. California, for example, does not recognize this method for calculating overtime. Check with your employment counsel before adopting a fluctuating workweek calculation for overtime to make sure it is permitted in all states where you operate.



To clarify, I was referring to both options "fluctuating work week" which does allow the 50% half time regular rate for OT and the regular salaried nonexempt option.

I confused the two though by indicating only the 50% OT rate is needed for both.

We do pay 1.5 for OT on our regular salaried nonexempt employees.

Interesting links, Harold, thanks for the follow up on the fluctuating work week.

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