What are the New Overtime Rules for My Employees?
Change is Coming! Yes, the day after the election that is all we are hearing, but these new payroll overtime rules are changing on 12/01/2016. You will now need to pay more of your employees overtime, if they work over 40 hours a week.
- The biggest change is the threshold for paying overtime on any white collar employee has increased from a minimum salary requirement of $455 per week to $913 per week. That means effective Dec 1, 2016 anyone earning less than $47,476 is generally required to receive overtime pay for time worked in excess of 40 hours.
- The business owner who manages the business and owns at least 20% of the business is exempt from these rules.
- All payroll is subject to the new overtime rules, unless the employee falls under a white-collar exception.
- Unless the employee falls under an approved exemption, they will be considered salary-nonexempt or hourly-nonexempt. Both categories are subject to overtime pay, unless they earn over $47,476/year.
Make sure that you are aware of the rule changes, and have a method to track your employees time worked, if they fall under the minimum requirement. If you have questions about the White Collar Exemptions, we would be happy to provide you with a white paper, explaining the new rules. Call us or email us, and we will happily send it your way.
You can also look at the Department of Labor’s Handbook, which includes all the changing payroll laws. https://www.dol.gov/Whd/FOH/index.htm