GUIDEP R E S E N T E D B YS W I P E C L O C K

FEDERALOVERT IME LAWS

F EDERA L OVER T IME L AWS

FAIR LABORSTANDARDS ACT

*Intended to

provide employee

protection

Increases the

Salary Threshold

and defines

Exempt Employee

Duties

Salary

Threshold

updates &

Duties test

FEDERAL OVERTIMERULE

EFFECTIVEDECEMBER 1 , 2016

$47,476NEW SALARY THRESHOLD

THE OLD SALARYTHRESHOLD WAS $23,660.

4.6 MILLION EXEMPTWORKERS FALL BELOW THE NEW THRESHOLD.

DUTIES TESTFor Exempt Employees

1 .PROFESSIONALS

Highly Skilled, Semi-Self

Employed or Highly Creative

Attorneys, Doctors, Dentists,

Teachers, Clergy, Innovators,

Actors, Composers Writers

2 .EXECUTIVES & MANAGERS

Business owners 20% or

more equity ownership and

employee of the business are

considered exempt

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EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business,          division or subdivision of the                                  enterprise 

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EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business,          division or subdivision of the                                  enterprise 

MANAGERS­Manages 2 or more employees­Primary duties are management duties­ Have Decision Making Authority

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EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business,          division or subdivision of the                                  enterprise 

MANAGERS­Manages 2 or more employees­Primary duties are management duties­ Have Decision Making Authority

DECISION MAKINGHas weight in decision making overhiring/ firing, salary range, promotion, &salary range

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02

03

EXECUTIVE EMPLOYEEPrimary Duty is to manage the Business,          division or subdivision of the                                  enterprise 

MANAGERS­Manages 2 or more employees­Primary duties are management duties­ Have Decision Making Authority

DECISION MAKINGHas weight in decision making overhiring/ firing, salary range, promotion, &salary range

MOST SHIFTMANAGERS INRESTAURANTS ANDRETAIL WON'T PASSTHE DUTIES TEST.

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

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ADMINISTRATIVE/ OFFICE Non­Manual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.   

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03

ADMINISTRATIVE/ OFFICE Non­Manual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.   

INDEPENDENT JUDGEMENTHas authority to exercise judgementabout matters of significance related tothe business. 

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03

ADMINISTRATIVE/ OFFICE Non­Manual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.  

INDEPENDENT JUDGEMENTHas authority to exercise judgementabout matters of significance related tothe business. 

NOT CLERICAL Ability to Make Decisions Free fromImmediate Supervision.Their decisions can severely impact thebusiness. 

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02

03

ADMINISTRATIVE/ OFFICE Non­Manual Work, Administrative orOffice Work Directly related to themanagement, general businessoperations, or management of business'semployees.  

INDEPENDENT JUDGEMENTHas authority to exercise judgementabout matters of significance related tothe business. 

NOT CLERICAL Ability to Make Decisions Free fromImmediate Supervision.Their decisions can severely impact thebusiness. 

What Should Businessesand Managers do about theNew Overtime Rule?

UNDERSTANDTHE

IMPORTANCEOF THE FEDERAL OVERTIME LAWS

The Department of LaborIncreases Fines again forViolations of the  Federal Overtime Law 

$1,925 per violation

FINES &PENALTIESINCREASED

POORREPUTATIONFORCOMPANIESWITHVIOLATIONS

UBER

McDonald's

WELLS FARGO . 

No Company is immunefrom Bad Press & BadReputation Risk

EXAMINEALL EXEMPTEMPLOYEES

CURRENTLY EARNING UNDER $47 ,476

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INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.  

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INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.  

MOVE TO NON-EXEMPTIf your employee makes less, thenconsider how many hours of overtimethey put in on a weekly average

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02

03

INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.  

MOVE TO NON-EXEMPTIf your employee makes less, thenconsider how many hours of overtimethey put in on a weekly average

OFF LOAD THEIR WORK LOADCan their workload be offset byresigning tasks to exempt employees orby hiring lower paid hourly employees? 

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03

INCREASE SALARY TO $47,476If your employee makes around $45,000or more, consider increasing their wagesand keeping them exempt.  

MOVE TO NON-EXEMPTIf your employee makes less, thenconsider how many hours of overtimethey put in on a weekly average

OFF LOAD THEIR WORK LOADCan their workload be offset byresigning tasks to exempt employees orby hiring lower paid hourly employees? 

Remember that the ExemptSalary Threshold will adjustevery 3 years.

Can you afford to continueraising wages to stay abovethe new thresholds?

EDUCATEMANAGERS &EMPLOYEESABOUT THE NEW OVERTIME RULES

T RA I N , EDUCA T ED , I N FORM

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 meanymore?

Prior approvalneeded?

What isallowed?

Exceptions?

MANAGERS TO FIELDQUESTIONS

OUTLINE COMPANY 'SOVERTIME POLICY

TIMEKEEPINGSYSTEMS

ARE A COMPANY 'S BEST DEFENSE

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AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked 

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AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked 

DECREASES RISK OF NON-COMPLIANCEBy automatically recording overtimehours and retaining records. 

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03

AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked 

DECREASES RISK OF NON-COMPLIANCEBy automatically recording overtimehours and retaining records. 

ASSUMED GUILT BY DOLThe Department of Labor assumes guiltwhen companies can't provide records,or when records aren't complete.Manuel time sheets are easilylost/misplaced or fraudulently altered. 

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02

03

AUTOMATICALLY TRACKSEmployee hours, Overtime hours, PaidTime Off, and Sick Leave areautomatically tracked 

DECREASES RISK OF NON-COMPLIANCEBy automatically recording overtimehours and retaining records. 

ASSUMED GUILT BY DOLThe Department of Labor assumes guiltwhen companies can't provide records,or when records aren't complete.Manuel time sheets are easilylost/misplaced or fraudulently altered. 

FOR MOREINFORMATIONON FEDERAL

OVERTIME LAWSHTTP : / /BIT .LY /2IKUKMJ

FOR MOREINFORMATIONON AUTOMATEDTIMEKEEPING

WWW .SWIPECLOCK .COM

Written and Created byAnnemaria Duran

WELLS FARGO IMAGE CURTESY OF MIKE MOZART