Overtime Rule Changes on the Horizon

Overtime Rule Changes on the Horizon 

JulieBy: Julie Roe, Staff Accountant 

Overtime rules are about to change, and all employers need to be aware. The Department of Labor (DOL) is making some adjustments for 2016 that change the Fair Labor Standard Act’s overtime exemption- and over half of the businesses in the country could be effected.

The DOL proposed regulations would put the salary threshold needed to qualify for overtime exemption at $970 a week ($50,440 annually). The previous threshold sat at $455 a week ($23,600 annually).  This means, businesses with employees earning less than $50,4400 a year will need to be aware of the new regulations.  These employees will be eligible to receive overtime pay should they work more than 40 hours per week.

Because each of your employees earn on different levels, they will each have different respective scenarios in regards to the funds they will be owed in the event that they work overtime hours.  Even just one hour of overtime per employee a week will begin to add up quickly.

While we are yet to know all of the specifics of the overtime rule changes for 2016, preparation for these adjustments should begin now for all business owners. H&M recommends that you become familiar with the number of salaried exempt employees that you have under the proposed threshold, and begin keeping track of the hours they have worked. Know how overtime plays into their work schedule.

We will keep you updated on this, but in the meantime, should you have any questions, reach out to us at any time.

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