The 40-Hour Work Week Has Gone Into Overtime.
It’s a ruling that many companies and employees have been waiting for—although not everyone was looking forward to it.
On May 18, 2016, the Department of Labor (DOL) released a final rule that radically increases the thresholds for overtime rules, expanding the number of employees eligible for overtime pay.
Under the Fair Labor Standards Act (FLSA), employees who work more than 40 hours in a week are entitled to overtime pay, unless they meet the requirements of certain wage and duties tests. Read more on that here.
In a nutshell, the rule doubles the minimum salary threshold from $455 per week to $913 per week (which amounts to $23,660 annually to $46,476 annually) and raises the exemption level for those considered to be “highly compensated employees” from $100,000 to $134,004 annual salary.
Cole Gavlas understands that the DOL rule may impact major business decisions, such as:
- Offering new benefits
- More flexible working arrangement for employees
The DOL rule could even possibly require reductions at your company.
Companies have until December 1, 2016, to make determinations on which employees to reclassify as nonexempt and implement the changes.
Of course you have questions, which the DOL has posted answers for here. But don’t rely on their generic responses. Cole Gavlas can help you assess the effects of the new overtime-pay rule. Our business advisors have the expertise to guide you through this change and help you plan for the future.
It’s in the best interest of your business—and your employees—to determine how the DOL ruling affects your business. Contact us today at (269) 329-6600.