Being aware of the latest industry standards and regulations is essential for any knowledgeable company. The new overtime rule going into effect December of 2016 will impact millions of workers and was created to meet the current needs of American employees.
The new regulations indicates are expected to:
“Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers, automatically update the salary threshold every three years, based on wage growth over time, increasing predictability. It will strengthen overtime protections for salaried workers already entitled to overtime, and provide greater clarity for workers and employers.”
How will this affect your company?
Small businesses may feel the most direct impact of this change. It’s possible that small-business owners may have to convert their salaried workers to an hourly wage to comply, so be aware of where your dispersed salaries fall within the regulations, and know what actions you’ll have to take.
Another option is to cut worker’s hours to comply. Keeping employee hours under 40 hours per week will allow you to enforce the new regulations, but it could hurt company morale.
This rule hasn’t been changed in over a decade and has been updated to reflect the current needs of the economy. Think of this as less an inconvenient regulation to work around than an opportunity to attract and retain.
So what are the choices for employers?
Raise salaries above $47,476:
This will exempt you from this new rule while providing employees with a better quality of living.
Limit workers to forty hours per week:
Consider using a variety of these practices, if you aren’t already. Limit hours if you see fit, but it’s mandatory to pay overtime if they exceed forty.
Pay time and a half for overtime work:
If your employees have to stay beyond the designated time limits, it’s mandatory to pay time and a half to compensate. This allows the job to get done, while also paying fairly for the skills of your worker.
Hire more permanent or temporary staff:
To disperse the work, consider bringing in capable new employees. New hires may add some new life to your company and help veterans feel less pressure. These new hires may also integrate into the company culture, providing diversity and more skill to your company’s environment. If new long-term professionals don’t seem like the right option, hire temporary staff. This quick fix can help ease a tense environment. The higher-paid professionals can focus on their important tasks, while the temporary staffers pick up the non-critical tasks that require less skill.
Show your appreciation to keep employees engaged and productive. The professionals at Davis Staffing know how to hire quality workers and provide for their needs. For more information and insight provided by one of Chicago’s best staffing companies, contact us today!