New Overtime Law: Here’s the Scoop & Some Low Hanging Adjustments

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Last month, on May 18, 2016, President Obama and Secretary Perez changed the way we work with the Department of Labor’s final rule updating the overtime regulations. This overtime law will extend overtime pay protections to over 4 million workers within the first year.

Here’s what you need to know about the new law, and some low-hanging fruit to help teams rise to their potential at work.


Here’s the scoop

It all began on July 6, 2015 when the Department published a Notice of Proposed Rulemaking (NPRM) in the Federal Register and asked for feedback regarding the proposal. The 270,000+ comments they received helped to shape the ruling.


How it impacts organizations

The  Final Rule– which you can review here—  is putting its focus on revamping the salary and compensation levels needed for Executive, Administrative, and Professional workers to be exempt.

Workers  who are eligible as non-exempt qualify when they earn $913 per week, or $47,476 annually for a full-year worker or less. This means that employees that fall into this bracket are to receive time and a half for overtime work.

Additionally, the Final Rule gives employers the ability to use non-discretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.


When it’s going down

The effective date of the final rule is December 1, 2016; with automatic updates to those thresholds occurring every three years, beginning on January 1, 2020.


Low hanging adjustments

This new overtime law is likely to result in an array of changes within your organization. In addition to those larger changes, employers can coach their teams on working smart and making the best use of their time.

  • Use tech— Employers can jump on the Millennial bandwagon by adopting tech into their work strategy. Partner with your tech-savvy team to find ways to use tech to streamline processes. Not to mistake efficiency for laziness, these native tech users can help cut down on the time spent on administrative duties– leaving more room to get the job done within their workday.
  • Cancel meetings— In an article with FastCompany, tech giant, Asana skips meetings on Wednesdays so that their people can get their tasks done without interruption. Sidestepping distractions, Asana found their employees were more productive and better engaged.
  • Assign a mentor— If newbie employees are struggling with time management, have them partner with a senior worker. This way, the seasoned employee can help their newer counterpart on their productivity.

Do you have any additional tips for coaching employees on time management? We’d love to hear them! Reach out to

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