New Proposed Rule for Overtime Compensation
Currently, if you have an employee who is salaried, not supervising others, and earns more than $35,000 per year, you are not required to compensate them for overtime. The Department of Labor is proposing a change to this regulation, seeking to increase the salary threshold to $55,000 per year. Under this new proposal, any non-exempt employee who is on a salary and does not have supervisory responsibilities can earn up to $55,000 per year. If their salary falls below this threshold and they work more than 40 hours in a week, you would be obligated to pay them overtime, which is calculated at 1.5x their hourly rate.
It’s crucial to meet with a skilled labor attorney or an experienced HR expert to thoroughly address the implications of this recent overtime ruling. It is crucial to accurately classify your employees. This requires careful thought and thorough analysis of their roles and responsibilities.
Ensure employees owed overtime are properly paid. Failure to do so opens up the potential for back pay, fines, and penalties. Multiple employees can also band with attorney to invoke collective damages. Preemptively classify employees accurately and provide appropriate overtime.
By being proactive and getting advice from experts in labor laws, you can protect your company from legal issues and create a compliant and peaceful work environment.
This information is intended for information purposes only. Any reader understands that Apex Benefit Group is not providing legal advice, tax advice, or professional services in this article. This article serves to offer practical information regarding the subject matter and is not a comprehensive resource.
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One valuable option that employees often overlook is enrolling in voluntary benefits offered by their employer. These benefits can provide an added layer of financial security and peace of mind for you and your loved ones.