Small Business Owners Beware
September 28, 2016
New Department of Labor overtime rules for employees take effect December 1, 2016... are you prepared?
If you own a business and have employees earning annual wages of less than $47,476 then you need to be aware of the new overtime rules taking effect on December 1, 2016. The Department of Labor has provided new rules regarding exempt and non-exempt employees and how they are paid. If you have an employee making less than $47,476 annually then the employee needs to be paid time and a half for any hours worked over 40 hours per week.
These new rules are especially troubling because small business owners need to find a way to track and monitor employees work hours each week to ensure that no employees accidentally work over 40 hours. The worst part is that if this happens by accident, which it most certainly will if proper monitoring is not put in place, the employer still has to pay the employee time and a half.
To further complicate matters, states have put their own twists on the new rule so be sure to check with your state as well to ensure your policys are compliant. For example, in California they go one step further and place an overtime pay requirement on daily hours worked, not just hours worked in one week.
Bottom line... use your resources to educate yourself and to find the best way to comply with and protect your company from these new rules. Checkout this website for more information and contact your payroll service provider to see what resources they have available to help you understand your responsibilities under these new rules. Department of Labor - Final Overtime Rule