The Federal government has changed a law that is relative to labour laws and overtime pay. For the most part the law isn’t going to effect a lot of people. If you have employees that are in your organization who are paid a salary you need to pay attention, get your pen and paper out.
This passed May 18th, 2016 with an implementation date of December 1st, 2016. No Political discussion, it is what it is there is nothing to it. Before we dig in I want to talk about the mindset in which you approach things in life.
Lets dive into this law and talk about the impacts it may have on your company.
- Goes into effect December 1st, 2016.
- If a worker makes less than $47,476, the employee is entitled overtime if they work more than 40 hours a week. That impacts 4.2 Million workers in the U.S. (https://www.dol.gov/whd/overtime/final2016/)
Employers have a few different ways to comply with the law:
- You can raise your employees salary above the threshold of $47,476
- Pay the time-and-a-half for those who are working more than 40hrs
- Cut people’s hours to make sure their not working more than 40hrs
What they did was calculated where they believe the minimum poverty levels were, they came up with a multiple of it. The $47,476 is not just a random number that they came up with, it’s a multiple of a poverty line in order to help people get over that threshold. So every 3 years they’re going to revisit what the cost of living is, what the poverty line is and they are going to adjust the number. The number will likely go up 3 years from now in 2019. Read More...
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There hasn't been much going around on this topic so we'd thought we'd bring it to attention again! It's right around the corner. Are you prepared?