6 Things Your Small Business Must Do to Get Ready for New Overtime Rule

6 Things Your Small Business Must Do to Get Ready for New Overtime Rule

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The Department of Labor’s new overtime rule, which raises the annual salary threshold for exempt employees from $23,660 to $47,476, goes into effect Thursday, December 1, 2016.

 

Unprepared businesses are scrambling to make changes to avoid detrimental overtime and noncompliance expenses and fines.

 

According to the DOL, approximately 4.2 million American workers are currently classified as exempt from overtime pay yet earn salaries that fall below the new minimum threshold.

 

Employers have until December 1 to either give exempt employees who make below the new threshold a raise or reclassify them as nonexempt.

 

This may or may not mean an increase in total wages; that depends on the decision the business owner makes. Some companies may choose to make some positions hourly, rather than salaried, to stay in compliance with the new law without increasing labor costs.

 

Steps Small Business Can Take to Prepare and Stay Compliant with the New Overtime Rule

 

Small Business Trends spoke via telephone with John Waldmann, founder and CEO of Homebase, an employee scheduling and time-tracking software application for the restaurant and retail industries, to get his insights on what small businesses can do to prepare and stay compliant when the new rule goes into effect.