With new overtime rules set to take effect on December 1st, SHRM interviewed two ADP thought leaders to gather insights to help HR leaders prepare. In an article titled “It Takes Two: Exempt Employee Must Meet Both Salary and Duties Tests, ADP’s Sushma Tripathi addresses some misperceptions around the changes to the overtime rules. For example, meeting the salary threshold doesn’t automatically make an employee exempt from overtime pay; employees must earn at least the standard salary threshold of $47,476 and fulfill one of the exemptions in the standard duties test.
In another article titled, “Overtime Rule Puts Focus On Incentive Pay,” ADP’s Meg Ferrero discusses how the new rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary threshold.
Head over to SHRM to read both stories in their entirety!