Connections - Summer 2016 - (Page 19)

> Overtime Rule Released: How Associations Can Prepare BY ALEX BEALL THE NEW OVERTIME rule is a reality, and come December 1, associations will need to be in compliance. In May, the White House published the final overtime rule, which will increase the minimum salary for exempt employees by more than 100 percent, and associations need to be ready when it takes effect on December 1. The rule states that all salaried employees guaranteed to make less than $47,476 annually, up from $23,600, will qualify for nonexempt status and will be eligible for overtime pay. The salary threshold will also be increased every three years beginning in January 2020. In preparation, associations and "employers should get into the information-gathering mode," said Julia Judish, special counsel with Pillsbury Winthrop Shaw Pittman LLP. To make the necessary changes, associations need to know just how much they're going to be affected. "The first and most critical thing that any employer needs to do is look at its currently exempt employees who are paid on a salaried basis and identify which of these employees aren't guaranteed a salary-with the new regulations including at least quarterly nondiscretionary bonuses-above that line," she said. "Those are the employees who are affected." Employees converting from exempt to nonexempt could just mean extra record-keeping. But for associations whose employees tend to work more than 40-hour weeks, there could be a large cost. Determining that cost ahead of time is key. "Once the employer has identified which of its currently exempt employees would convert to nonexempt, the employer should start now requiring those employees to do the equivalent of clocking in and clocking out and track their average hours," Judish said. With the understanding of how much the rule will affect costs based on how much overtime soon-to-be nonexempt employees work, an association can start connections > 19

Table of Contents for the Digital Edition of Connections - Summer 2016

Message from the Chair
GSAE News & Events
New Members
Keeping Up with Technology
Achieve More by Connecting the Dots for Your Association
5 Ways to Meet Virtually
How to Enhance Your Events with Mobile Games
Overtime Rule Released: How Associations Can Prepare
The Humor Rules for Business Presenters: How to Be Funny, Not Offensive
ATHvengers Assembled at the GSAE Annual Meeting
GSAE’s July Luncheon: Photos
Meetings Thought Leadership
Destination: The Emerald Coast
Choices: Beyond Mentoring
Index of Advertisers

Connections - Summer 2016