Employers, are you ready for the new overtime regulations for your salaried employees effective December 1, 2016?
In May the Department of Labor doubled the salary threshold that normally keeps your salary employees exempt from overtime pay. This means that if you pay your salaried employees who have executive, administrative, or professional duties less than $47,476 per year, you are now subject to paying them overtime if they work more than 40 hours per week.
What can employers do to respond to this new rule?
1. Limit hours to only 40 hours per week
2. Raise employee salaries over the threshold
3. Be prepared to pay time and a half for overtime work
4. Change your salary workers to hourly. (Great care needs to be followed when doing this to stay compliant with the Fair Labor Standards Act)
Small businesses are not exempt from this raise in the salary threshold. Will you be ready?