- Associated Press - Saturday, November 26, 2016

SIOUX FALLS, S.D. (AP) - Sioux Falls businesses are working to reclassify employees who will be eligible for overtime pay when the new federal rule takes effect next month.

The rule, which is expected to affect 4.2 million workers nationwide, will double the current Department of Labor salary threshold that requires most exempt employees be paid at least $455 per week to $913 a week. The annual salary requirement is moving from $23,660 to $47,476, and will increase every three years.

That means changes for employers such as DakotAbilities, which is reclassifying its 15 residential managers and department supervisors from exempt to nonexempt status.

Human resources director Tammy Loos told the Argus Leader (https://argusne.ws/2g4zhiV ) that the agency is prepared for the change, though it’ll significantly impact its budget.

It’s a topic of conversation at the Sioux Empire chapter of the Society for Human Resource Management, board president Rachell Henning said.

“Our employment law attorneys have seen clients working through this with all their employees, and the majority have been moving employees who were affected into hourly positions,” she said. “Few if any have done any wage increases to be able to meet the new threshold.”

She added that some businesses have done a complete review of their compensation structure.

“So it’s definitely created a huge endeavor on the part of businesses large and small,” said Henning. “And that’s not necessarily a bad thing. It’s just burdensome.”


Information from: Argus Leader, https://www.argusleader.com

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