Did you know that the rules for overtime pay are about to change? Small business owners need to know how these changes will impact their business.
Effective Dec 1st, 2016, the Department of Labor (DOL) will require employers to pay their workers who earn less than $913 per week ($47,476 per year) overtime pay when they work more than 40 hours in a given week. Certain “white collar” workers who meet the salary requirement of $47,476 may be exempt from these new rules based upon the duties they perform. For example, those that primarily perform administrative, executive, or professional duties as defined by the DOL won’t require to be awarded overtime pay.
An administrative, executive or professional employee with total annual compensation of
at least $134,004 (increased from $100,000) is exempt without meeting the full duties test. The final rule also includes changes to allow bonuses and incentive pay to count towards up to 10% of the new salary level.
Although these changes benefit millions of workers by putting more money in their pockets and improving worklife balance, not everybody is happy with the new requirements. The changes ultimately transfer income from employers to employees but at the same time increase employer costs. With the limited window to meet the new standards, the time for business owners to act is now!
We can assist you in identifying employees that may not be impacted by the changes, review your current policies, and help you develop training procedures. Give us the opportunity to help mitigate the potential costs to your business, while ensuring you stay compliant with the new regulations.