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Contingency Planning Urged for Proposed Overtime Rule


John Thompson was quoted in SHRM on August 5, 2015. The article “Contingency Planning Urged for Proposed Overtime Rule” discussed how although it's probably too soon to start reclassifying workers in response to the proposed overtime rule, it is time to start making contingency plans.

John said contingency planning should include assessment of:

Don’t forget, John cautioned, that the salary requirement applies on a workweek or pay-period basis.

“Annualized figures might be fine for purposes of making projections or speaking in generalities, but they do not represent the regulatory requirement,” he said. “This is not simply a picky point: Some employers get the misimpression that, as long as the annualized figure is met, the exemptions’ compensation requirement is satisfied.”

To read the full article, please visit SHRM.


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