Many of you have gotten wind (and are already preparing for the biting coldness that follows as it hits you directly in the face) with the new Labor Law initiated by the US Dept of Labor surrounding exempt employees and overtime. Before, salaried employees below $23,660 a year were eligible for overtime. That's now doubled to a whopping $47,476 in one fell swoop! Under this new policy, hundreds of thousands and millions of workers will be required to now provide overtime pay to any eligible employee whose salary is below that $47,476 threshold! What does this mean for you and other small business partners (for and nonprofit alike)? First and foremost, all small businesses will need to completely reevaluate their staffing and empolyee status'. Do you know which of your employees are completely exempt from overtime pay? John Swanciger, CEO of Manta states: "Simply employing salaried workers doesn't mean businesses are exempt from providing overtime wages, so it's vital to clarify worker classification to comply with FLSA regulations. Business owners should look at how many hours their employees work - in some cases, it makes more financial sense to keep current salaries and pay employees overtime. However, for employees that work many hours over 40, or for those who are already close to the new salary threshold, small business owners can raise salaries to match the new regulations and avoid overtime costs" (http://www.bizreport.com/2016/05/smbs-new-labor-laws-could-impact-revenue-lines.html).
Furthermore, Mr. Swacinger states that many small business owners are not entirely sure "if their salaried workers were exempt from overtime pay under the current federal rules."
The first step should be to become educated and understand the regulations. Second step is to then identify how to make your necesary transitions along with analyzing the financial and service delivery impact of your business. Third step is to then look at what tools do you need to start implementing now (such as time-tracking strategies) in order to maintain compliance of regulations.
While small business continue to battle these types of challenges, we look forward to your ongoing insight and response to current and future policies and legislation impacting our region.