HR Tip of the Week

HR Tip of the Week

HR Tip of the Week:  Tips for 2020 Salary Budget Planning Due to Mandated Pay Increases

It’s crunch time for employers to plan salary budgets for 2020 given the DOL Final Rule on the salary threshold, which was raised to $35,568/year for employees classified as exempt, in addition to the state minimum wage increase to $9.45/hour for hourly employees, effective January 1, 2020.  Here are four points to consider during planning:

  1. Determine how the 2020 company compensation budget will be effected.
  2. Determine which exempt and non-exempt employees may be affected.
  3. Determine how your organization will comply with DOL’s final overtime exemption rule and the impact it will have on the company’s budget.
  4. Determine how applying the new exempt threshold and minimum wage will impact internal equity, salary compression, and organization’s bottom line.

Contact HR Advantage today for assistance. To learn more click here.

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