Final Rule on Overtime: Everything You Need to Know for 2020

Last month, the U.S. Department of Labor published its long-awaited Final Rule to the “white collar” overtime exemptions which will go into effect on January 1, 2020.

The federal Fair Labor Standards Act (FLSA) overtime rule determines whether employees are eligible or exempt for overtime pay.

To be exempt from overtime under the FLSA, employees must be paid a salary of at least the threshold amount and meet certain tests regarding their job duties. If they are paid less or do not meet those tests, they must be paid one-and-a-half times their regular hourly rate for hours worked in excess of 40 in a workweek.

The new rule will raise the salary threshold from $455 a week ($23,660 annualized) to $684 a week ($35,568 annualized). It will also allow employers to pay up to 10 percent of that minimum level ($3,556.80) in commissions, bonuses, and other non-discretionary incentives.

Such bonuses include nondiscretionary incentive bonuses tied to productivity or profitability. For employers to credit nondiscretionary bonuses and incentive payments (including commissions) toward a portion of the standard salary level test, such payments must be paid on an annual or more frequent basis.

For example, instead of guaranteeing a salary of $684 per week, an employer could pay $615.60 per week and provide incentive pay, bonus, or commission equal to $3556.80 (10 percent of $35,568) at the end of the year to reach to the salary threshold.

Exempt vs. Nonexempt

Exempt Employees: Employers must pay a salary rather than an hourly wage for a position in order for it to be exempt. Exempt positions are excluded from minimum wage, overtime regulations, and other rights and protections afforded nonexempt workers. Typically, only executive, supervisory, professional or outside sales positions are exempt positions.

Nonexempt Employees: Employees who fall within this category are not exempt from FLSA requirements. They must be paid at least the federal minimum wage for each hour worked and given overtime pay of not less than one-and-a-half times their hourly rate for any hours worked beyond 40 hours each week.

The new rule is expected to prompt employers to reclassify more than a million currently exempt workers to nonexempt status and raise pay for others above the new threshold. 

Meeting the salary threshold doesn’t automatically make an employee exempt from overtime pay—the employee’s job duties also must primarily involve executive, administrative or professional duties as defined by the regulations.

And while the new rule has raised the salary threshold, there were no changes to the current duties test.

White Collar Exemptions

Each of the three white-collar exemptions has slightly different criteria which it’s important that employers review:

Executive Exemption: The employee’s primary duty must be managing the enterprise or a department or subdivision of the enterprise. The employee must customarily and regularly direct the work of at least two employees and have the authority to hire or fire workers (or the employee’s suggestions and recommendations as to hiring, firing or changing the status of other employees must be given particular weight).

Administrative Exemption: The employee’s primary duty must be performing office or nonmanual work that is directly related to the management or general business operations of the employer or the employer’s customers. The employee’s primary duty also must include the exercise of discretion and independent judgment with respect to matters of significance.

Professional Exemption: The employee’s primary duty must be to perform work requiring advanced knowledge in a field of science or learning that is customarily acquired by prolonged, specialized, intellectual instruction and study.

Next Steps

Practices with exempt employees who currently earn more than $455 per week, but less than $684 per week, and who satisfy the duties requirements, will need to either increase the employee’s salary to the new level or re-classify the employee as non-exempt.

It is important for practices to consider how the new rule interacts with state laws. The general rule in employment law is that businesses must comply with the law that provides the most protection for the employee.

So, for example, in states that have their own exemption tests—such as California—the employer must satisfy whichever salary threshold is greater, whether it’s the federal or state rate.

Additionally, some states may have different duties tests as well as salary cutoffs, and it is important to understand and comply with the more stringent of the applicable rules.

You can read a list of FAQs regarding the Final Rule here.

For additional questions or assistance, please contact Consult YHN’s Human Resources Manager, Jodi Bryan, at 800-984-3272 ext. 305 or jbryan@consultyhn.com or Director of Recruiting, Ernie Paolini, at 800-984-3272 ext. 327 or epaolini@consultyhn.com.

About the Author

Jodi Bryan is the Human Resource Manager at Consult YHN. Prior to joining the organization in 2013, she held HR positions with progressive responsibilities in the pharmaceutical, manufacturing and banking industries. Jodi has been certified as a Professional in Human Resources since 2000.

Six Key Elements to an Effective Direct Mail Campaign

There are those individuals who believe that direct mail doesn’t work anymore, but our Associates’ numbers tell another story!

Based on our practices’ data, the average cost-per-call is $247 and the cost-per-appointment is $442. Over the past year, direct mail generated an average of 40 percent ROI for our Associates.

In fact, when it is executed properly, direct mail is still one of the top opportunity drivers for our practices! When the Consult YHN marketing team develops direct mail strategies for our Associates, we incorporate the following components:

  • 1. Vendor

Surprisingly enough, there are numerous direct mail vendors that specialize in the hearing industry. We recommend only working with these companies because they understand the market and how to speak to the target audience. All their pieces have been tested and proven to drive results and they will supply the distribution list at no additional cost. Contact us for Consult YHN’s preferred vendor list and pricing.

  • 2. Budget

Our general rule of thumb is to allocate about 45 percent of your total marketing spend towards direct mail. Every practice has their own objectives and goals that may require increasing or decreasing that percentage amount. It is up to the practice owner to decide what he/she is comfortable spending and how much they are already investing in other marketing efforts. All of this information helps us determine what funds are available to put towards direct mail.

  • 3. Distribution

This is a key attribute of the direct mail strategy. If you aren’t reaching the right people in the appropriate zip codes, then it defeats the purpose.

Here are the factors that you should consider:

  • Age — Typically between the ages of 62-65, depending on how many residents it pulls.
  • Income — We suggest adding a household income filter of $30K. If you need more residents to target, you can eliminate that filter, but we don’t recommend increasing it. Keep in mind that most of these individuals are retired and don’t have as much disposable income.
  • Zip Codes — We recommend looking at your database and identifying in which zip codes your current patients live. If individuals in certain zip codes are already visiting and purchasing from the practice, others are likely to do so. Once the targeted zip codes have been identified, send them to the direct mail vendor of choice to confirm how many residents they can mail to in those areas.

Note: Consult YHN offers free territory analysis reports that identify all your surrounding zip codes in a certain mile radius (varies by practice) and where your competitors are in relation.

  • 4. Approach

Now that you have an idea on the budget and who the target audience is, the next step is figuring out how to reach them. When it comes to a successful direct mail campaign, frequency and consistency are crucial. It is best to divide your total audience into groups and rotate them every mailer. Once you’ve reached everyone on your list, continue that rotation until you have sent a direct mailer to your total audience 3–4 times over a 12-month period. You don’t want to inundate them with direct mail, but you need to reach them more than once to make it impactful.

Another key factor is how many pieces you send out with each direct mailer. While direct mail can be successful, the response rates are relatively low (.25 – .5 percent). We recommend sending out 5,000 – 7,500 pieces for each direct mailer (per location) to drive the necessary amount of opportunities to make it worth the investment. If you think you need to send more than that, you may want to divide it up further so there is a steady flow of traffic to the practice on a consistent basis.

If you are curious as to what results you should expect, check out Consult YHN’s direct mail response rate calculator. It will tell you how many calls and appointments you should receive and the gross revenue that you should generate.

  • 5. Messaging

We rely on our preferred direct mail vendors to determine what messages are the most successful and what resonates the best with our audience. Those vendors will customize each message for the specific practice (i.e., logo, contact information, offer, etc.) and we do not recommend interfering with the overall message. When you change the content, it could skew the results. We also recommend incorporating an offer that will entice individuals to come in. Many practices offer a free hearing screening, but that may not be enough of an incentive to get patients to your office.

  • 6. Call Tracking

If you want to know if your direct mail campaign is successful, you must have a call tracking number on it! Even if you have the best front office staff, it doesn’t hurt to have a documented report that captures all the calls that came in. You can purchase your own call tracking number through one of Consult YHN’s preferred call tracking vendors or your direct mail company may provide one to you.

There is a lot of strategic thinking that goes into a direct mail campaign, which is why the Consult YHN Marketing team is here to help! We will work with you to determine the best strategy and if it is driving the necessary traffic and ROI.

For more information about how to optimize your direct mail campaign, click here. You can also calculate your marketing ROI with our new Marketing Calculator.

About the Author

Lindsey Pierangeli joined Consult YHN in 2012 and serves as the Marketing Manager. Previously, she held marketing positions with advertising agencies and worked on accounts such as Amazon and Coca-Cola. Lindsey graduated Magna Cum Laude from Johnson and Wales University.

Master the data, better serve your customers!

Marketing has changed. Since 2000, essentially all businesses prepared for these changes with toll-free numbers and considered themselves ready for inbound marketing. Inbound marketing is waiting for consumers to call — or text, or visit, or click through to — your business.

Use of the word waiting doesn’t do the concept justice, however. Inbound marketing is not passive, it’s active waiting, or, more correctly, encouraging consumers to contact you. Inbound isn’t a battle for prospects’ attention. It’s not a hard or aggressive sale as much as it is a strategy for presenting your business. Through content on your website, social media, blogs, etc., you encourage consumers who find your products and services relevant to their needs to reach out to you.

Inbound is often applied to the customer journey — from being total strangers to having an awareness of your business, then moving through stages of familiarity and consideration of your offerings, and finally into the decision or conversion phase, where they choose to become customers. A smart business presents content in appropriate channels that suits the interests of prospects throughout this journey. Each portion of your content collection should relate to the buyer’s unique position in the journey and then advance him/her toward conversion.

The trick is knowing if and how the content and the channels are actually moving the customer along in his/her journey. That’s done with data. Even though we’ve moved into instant, digital everything, some significant parts of a buyer’s journey still happen offline, and offline actions must also be tracked and measured.

Offline data gaps can occur due to material differences among marketing channels. Facebook is a terrific place to build awareness and create a community, but social platforms are not where consumers typically go to make purchases or gain deep knowledge of your products/services.

At the other end of the journey, phone calls are rarely first touches. A customer who phones your business may want information that they couldn’t find on your website — and there’s a good chance the customer is ready, or is almost ready, to buy. If you’re not measuring phone calls, you’re likely missing substantial data. The technology of call intelligence platforms makes taking inbound calls while collecting data, recording, transcribing (and more) a simple proposition. Most tracking platforms integrate call data with CRM, practice management software, and other marketing platforms, giving business owners a more complete picture of their potential customers.

Why is call tracking important? It’s a digital world, but calls are far from dead. Even though the integration of the web and smartphones into everyday life has changed our world substantively, phone calls are still alive and well in the marketing process. Capturing, tracking and acting on the intelligence of your phone calls is no longer a luxury, it’s a necessity.

In fact, the continuing evolution of phone technology has created an environment where mobile searches can result in immediate calls and conversions — all from the same device. Measuring which search queries, ads and content make those calls happen, therefore, will be key to building and refining a winning overall strategy.

About the Author

Jerry DeRosa is Consult YHN’s Vice President, Marketing. He draws from more than 25 years of marketing experience with expertise in direct and retail marketing, advertising and digital media. Previously, Jerry was Director of Marketing Communications for Wolters Kluwer Health, a medical information, data and publishing company.

What You Didn’t Know About Marketing

Every quarter, we conduct ROI reports for Associates who share their marketing results with us. We then compile those results and look at the data from a broader perspective to determine marketing trends in our industry.

Here are three interesting insights from our most recent ROI analysis that we all can benefit from.

did you know

At 87% digital marketing brings in the highest ROI?

With an average cost per call of $13 and cost per appointment of $99, Digital Marketing has the lowest cost of acquisition and highest ROI.

If you aren’t sure how your digital marketing is performing, contact Consult YHN’s marketing team for a FREE digital marketing analysis and website assessment.

It is important to realize that a strong marketing strategy requires a multi-media approach and a robust digital marketing presence. To drive traffic to your website — and ultimately to your practice — you need to consider other digital marketing strategies above and beyond a static online presence. Consult YHN partners with several digital marketing vendors that offer a variety programs that can boost your digital marketing strategy.

did you know

With $1.4M last year, direct mail brings in the most profit?

Our Associates invested over $1.9 million in marketing and 87% of their profit came from direct mail – $1.4 million over the past year!

If you aren’t making a profit from your direct mail, let Consult YHN’s marketing team help you. We can determine what kind of response you should be getting and do a deep dive on your direct mail strategy to maximize your results.

While direct mail can be costly and response rates have declined, it is still the number one opportunity driver for our Associates. That is why it is important that you have a direct mail strategy in your marketing plan, but one that doesn’t consume your entire budget. We recommend allocating about half of your marketing spend toward direct mail and strongly encourage you to review your results on a consistent basis to ensure you are getting the most out of your marketing dollars.

did you know

Your $1 grows to $1.87 when you have a marketing strategy?

For every $1 our Associates invested in marketing, they made $1.87! Do you know how much money you are making from your marketing?

You don’t need an Consult YHN marketing plan for us to develop an ROI analysis. Send your results to Consult YHN’s marketing team and we will provide you with insight and recommendations.

If you didn’t know, Consult YHN’s marketing team offers consultation and design services for FREE to all our Associates. We work as an extension of your practice to determine the most effective ways to reach new leads and keep you in touch with your existing customers.

Call the Consult YHN marketing line at 800-984-3272, option 8, and one of our account executives will answer all your marketing questions!

Marketing Trends You Need to Know.

We all know that marketing can be challenging! At Consult YHN we want to make sure our Associates are getting the most value from their marketing investment. To do that we routinely analyze our customers’ marketing program results.  Then, we assess the performance of the individual practice’s efforts against their marketing plan and provide recommendations for investment adjustments to make it a stronger plan.

In creating these comprehensive marketing ROI reports we’ve noticed some trends. We’ve collected those results and summarized the data to reveal what is working, and what is not!

011718-infographicSo… are you getting the most value from your marketing budget?

Contact the Consult YHN Marketing Department today for an objective review of your marketing ROI. Call 800-984-3272, select Option 8 for Marketing or email us at marketing@ConsultYHN.com today!

Would you like to improve your Social Media presence? Click here to download a copy of our latest white paper. 

 

Marketing Trends You Need to Know.

We all know that marketing can be expensive! At Consult YHN we want to make sure that our Associates are getting the most value from their marketing investment. To do that we routinely analyze our customers’ marketing program results.  Then, we assess the performance of the individual practice’s efforts against their marketing plan and provide recommendations for investment adjustments to make it a stronger plan.

In creating these comprehensive marketing ROI reports we’ve noticed some trends. We’ve collected those results and summarized the data to reveal what is working, and what is not!

AHAA-011369 Marketing ROI

So… are you getting the most value
from your marketing budget?

Contact the Consult YHN Marketing Department today for an objective review of your marketing ROI. Call 800-984-3272, select Option 8 for Marketing or email us at marketing@ConsultYHN.com today!

Would you like to improve your Digital Marketing awareness?
Click here to download a copy of our latest white paper.