Your Quick-Guide to the New Overtime Rule

Big news last week. Did you hear? Beginning December 1, 2016, there are new rules regarding overtime. Don’t panic! You have six months to decide which option makes the most sense for your company (but you won’t need all that time because you’ll utilize support from Eos HR, right?). Here’s what the new rule does:

1. Raises the salary threshold for overtime eligibility to $47, 476 per year.

2. Automatically updates the salary threshold every three years.

3. Increases protections for those already entitled to overtime.

The new rules could mean a significant change to your company’s employment policies. What are your options? Let’s break them down:

1. You can choose to pay time-and-a-half for overtime work.

2. Raise your employees salaries to above the new $47,476 per year threshold.

3. Limit your employee’s hours to 40 per work, thus avoiding overtime costs.

4. Or you can choose to incorporate a combination of the above.

It’s important to note that there are no changes to the duties test for executive,, and professional employees.

Not sure which options could work for you? That’s where we come in! Eos HR can review your current policies and strategize a new plan to implement that both meets the requirements of the new law AND makes sense for your company structure.

Overtime doesn’t have to be a scary subject. Gives us a call today!