New DOL Overtime Regulations: A Compliance Planning Checklist


With different Catch On To New Overtime Rules For Your Compliance Plans forms having different deadlines and submission periods in a financial year, it is a good idea to create a comprehensive calendar to track them all. This calendar can help you avoid legal hassles and financial penalties due to missed deadlines. Organizations must submit different tax forms, depending on the nature of their business, though most are required to submit Form 940 and Form 941, at minimum. Employers must also submit Form W-2 and Form 1099 for every employee or contractor they have hired.


The will publish a notice of the new minimum salary requirement in the Federal Register and on its website at least 150 days before the updated amounts take effect (in early-August). Based on current projections, the minimum salary level for executive, administrative, and professional employees is expected to increase to more than $51,000 on January 1, 2020. The DOL’s new overtime rule increased the annual salary thresholds for the executive, administrative, and professional exemptions from the FLSA’s minimum wage and overtime requirements, effective January 1, 2020. Employers should review their employee classifications and pay practices to ensure compliance. This incentive compensation, however, must be paid at least quarterly to be used as an offset to the new minimum salary requirement. Incentive compensation that is paid less frequently may not be considered.

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Conduct an audit to determine the financial impact of the proposed rule. Though the proposal is not yet final, and could be modified, employers may want to begin researching and planning what to do when the rule is finalized. Nonmanagement employees in maintenance, construction and similar occupations, such as carpenters, electricians, mechanics, plumbers, ironworkers, craftsmen, operating engineers, longshoremen and construction workers.

Under EPA, employers are legally prohibited from making discriminatory decisions around wage rates. If employees are performing work that is substantially similar, they must be paid equally, regardless of their sex, race or ethnitcity. To ensure compliance with EPA, organizations must implement systematic wage rate factors and maintain proper documentation for all wage rate decisions. Under FUTA, organizations pay taxes for funding unemployment benefits at the federal level. However, unlike FICA, taxes under FUTA are paid solely by the employer.

DOL Issues Final Overtime Rule

Irrespective of those factors, most non-federal payroll regulations cover issues such as overtime, minimum wage, new employment reporting, and taxes. Of course, there are a few federal regulations that apply to all organizations operating in the United States. For any organization, irrespective of its size and business, ensuring payroll compliance should be a priority. Of course, being compliant helps the organization avoid costly litigation, fines and penalties. However, that is not the only reason to meet compliance requirements.

  • If new policies, procedures or timekeeping systems will need to be implemented, create a timeline to train organizational managers and communicate to affected employees.
  • EPAY’s cloud based time and attendance system, is hosted on a private cloud.
  • Some might decide that raising salaries above the threshold is better than tracking hours and paying overtime.
  • DOL will review and consider the comments in developing the final rule.
  • In addition, under the FLSA, teachers, lawyers and doctors can qualify as exempt professionals without having to meet any minimum salary.
  • Automatic updates will occur every three years, effective on the first of the year.

√ Develop a game plan on how to deal with employees affected by the change. As you start to plan for the weeks and months ahead, we would like to help by offering a complimentary Workforce Realignment Feedback Session with our HCM Analytics team. The views expressed on this blog are those of the blog authors, and not necessarily those of ADP. This blog does not provide legal, financial, accounting, or tax advice.

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He or she also must exercise discretion and independent judgment on significant matters. The professional exemption generally can apply only if the employee’s main duty is work that requires advanced knowledge in a field that’s generally acquired by prolonged and specialized instruction and study. There are several steps an organization can take to ensure the accuracy of its payroll. They include classifying employees and contractors correctly, maintaining meticulous employment and pay records, and staying on top of the latest payroll law updates.

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