What does the new overtime law mean for you?

New laws can mean new changes. You may need make changes to your business with the new overtime law taking effect in early December. As an employer, it is your job to ensure fair labor conditions and pay. With new rules concerning overtime, you will make to make sure that you are prepared for any changes and address legal concerns before they arise.

What is the new overtime law?

Essentially the new overtime law increased the minimum salary from $23,600 to $47,476. So, starting December 1st, employees who make under $47,476 a year are legally entitled to overtime if they work over 40 hours a week.

There are a few exceptions to this law. Exempt employees such as executives, administrative or other high-level positions, do not apply to this law. It also excludes teachers, doctors and lawyers.

What does this mean for my business?

The overtime law means that you may have to make some changes to your business. This could include a variety of different options. For example, you can:

  • Pay the overtime
  • Not allow employees to work over 40 hours
  • Increase employee salaries to exceed the new threshold ($47,476 or over)
  • Decrease employee salaries, but allow overtime hours (under $47,476, but pay time and a half after 40 hours)

Every business is different, so determining what the best option is really depends on how much overtime you’d be paying, business size and various other factors. Speaking with an experienced business lawyer could help you determine the best course of action.

An attorney will inform you of any legal concerns you should think about before making a change to employees pay or hourly workweek. Prevention of any audits or lawsuits is key, let an attorney help you avoid any business or legal challenges that may arise from this new law.

What next?

Talk to your employees and explain what this law means for them. If you are making any changes to business operations, pay or overtime rules, make sure you address this to your staff so they understand what is going on.

It is also important to train them on proper timekeeping practices. This applies to all employees. Supervisors and managers who oversee workers and the Human Resources department should be aware of best practices for time keeping as well.

If you are unsure of what, if any, changes need to be made or you are unsure how to address and train employees, seek legal counsel. A lawyer can help you avoid any legal concerns when addressing employees about new changes.

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