As of today, overtime threshold rules may not require you to pay certain employees overtime pay, but the President’s new proposal may change that!
Under current rules, salaried employees earning over $23,000 per year don’t need to be paid overtime if they work more than eight hours per day or forty hours per week. The President’s proposal would increase the salary threshold from $23,000 to $50,400, not including commissions or bonuses. This means that many restaurant, retail, and factory supervisors will no longer be able to work over forty hours a week or shifts longer than eight hours without receiving overtime pay. On the other hand, employers don’t have to pay overtime to salaried workers who make less than the salary threshold if they have certain executive, professional, or administrative jobs and perform a set of job duties.
The proposal will be subject to a 60-day comment period, but will most likely pass, taking effect January 1.
The proposed regulations may generate questions for employers, for example who can and cannot be paid a salary and what the overtime rules are. Contact us to get answers to these questions or to review your business’ current compensation structure to ensure compliance with future regulations.