Did you know you may have more overtime expense next year?
The US Department of Labor proposed its first update to the overtime regulations since 2004. With little published guidance around these updates and 2016 quickly approaching, it leaves all of us on the edge of our seats of what this could mean for us.
The biggest change would be in the threshold for who will be eligible for overtime. Currently there is both an income test and a job duties test. The new rule makes any one earning $970 a week, or $50,440 a year, eligible for overtime in 2016, regardless of their job duties.
There are a few other changes proposed but the salary threshold may have the biggest impact to employers…it is estimated up to 5 million more workers will be eligible for overtime.
Currently, we are in the comments phase, meaning interested parties are providing their assessment of the pros and cons of the changes. The DOL will be collecting these comments until early September.
If you are uncertain of the impact this may have on your compensation expenses, or need to understand the importance of classifying employees properly, contact us at 216.586.4762 or email@example.com.