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Your Monthly
Newsletter from Integrated Benefit Solutions
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November 2019
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DOL Issues New Salary Limits for Overtime Exemptions
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 On Sept. 24, 2019, the U.S. Department of Labor
(DOL) announced a
new final rule
that updates the salary thresholds that some individuals must
meet in order to qualify for a minimum wage and overtime
exemption under the federal Fair Labor Standards Act (FLSA). The
final rule becomes effective on Jan. 1, 2020.
2019
Overtime Final Rule
The final rule affects the exemptions for executive,
administrative and professional (EAP) employees, highly
compensated employees (HCEs), employees in the motion picture industry
and individuals who work in various U.S. territories.
The final rule’s salary levels differ from both the 2016 and 2019
proposed levels. For 2020, the final rule EAP and HCE salary
exemptions are as follows:
- Standard salary level:
$35,568 per year ($684 per week)
- HCEs: $107,432 per year
The
DOL intends to update the standard salary and HCE total annual
compensation levels more regularly in the future through
notice-and-comment rulemaking.
Employer
Action Steps
To prepare for the final rule’s Jan. 1, 2020 effective date,
employers should:
- Determine which currently
exempt employees have salaries below the new threshold.
- Decide whether to increase
salaries for these individuals or reclassify them as
nonexempt employees.
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Using Voluntary Benefits to Entice Millennial Talent
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 Millennials consistently cite elements like
work-life balance and benefits packages as huge factors when
considering employers. Salary, it seems, comes secondary in many
cases.
You can capitalize on this market shift by offering more
imaginative and comprehensive perks to reel in millennial talent.
A good place to start is with voluntary benefits. Here are some
voluntary benefits to consider:
- Pet insurance
- Student loan repayment
- Identity theft insurance
- Elder care
- On-site daycare
Offering
even a few voluntary perks can signal to millennials that you’re
taking their wants seriously and get them through the door.
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The Pros and Cons of Incentive Pay
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 It’s no secret that top talent expects to be paid
top dollar. According to PayScale, 25% of employees said that
compensation was their main motivation for quitting a job.
Moreover, compensation is consistently reported as one of the top
motivators for employees.
That’s where incentive pay can be beneficial. Incentive pay is a
type of compensation awarded to employees for results achieved.
One common example of incentive pay is commission, where sales
professionals are paid a proportion of each sale they make.
Incentive pay programs can be designed in a variety of ways, but
their ultimate goal is to encourage and reward employees for
working hard and delivering results.
Incentive
Pay Advantages
With incentive pay, employees who work hard to produce results
will receive the compensation. As such, employees will be
motivated to deliver results and go above and beyond in hopes of
receiving incentive pay. Typically, productivity and employee
engagement will increase too.
Incentive
Pay Drawbacks
With incentive pay programs, there’s a risk for increased
competition among employees that can lead to resentment and a
cutthroat workplace culture. Additionally, as employees push
themselves in hopes of receiving incentive pay, they may be
putting themselves at risk of burnout.
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Five Steps to Successful Employee Communication
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Effective managers must be strong communicators
to inspire and lead their teams. The video below offers five
strategies and suggestions to keep your
managers' communication efforts on point.
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