New Overtime Pay Rules
Early holiday cheer for employees and perhaps some coal for employers.
If you are an employer, you may need to change how/what you pay your salaried employees. If you are an employee, you may find a raise or reduced hours in your stocking.
Federal law permits employers to treat executive, administrative, and professional salaried employees as “exempt” from overtime requirements (such as paying one and a half times regular pay).
As of December 1, salaried employees who earn less than $913 per week ($47,476/yr.) must be paid overtime if working 40 or more hours per week.
For example, if you are an employer paying your manager $40,000 per year, you must either increase her salary to $47,476 or start paying her for overtime.
So you better watch out…I’m telling you why…an employee bringing a claim for failure to pay overtime would be entitled to not only the unpaid wages but recovery of attorney fees and a statutory penalty.
Please contact us if you have any questions or need help developing new compensation plans.