In December the Department of Labor will finalize the new rules on overtime pay. Specifically, the new rule would double the amount salaried employees make to qualify for overtime from $23,660 to $47,476 annually. The rule also builds in a mechanism to update salary and compensation levels every three years starting in 2020. In addition to increasing costs for staffing companies, these new rules will create new bookkeeping challenges for you and your clients. These are only a few of the rules in this regulation (see overview below). And true to form, there are plenty of pitfalls that could easily trap employers if not correctly implemented.
https://www.dol.gov/sites/default/files/overtime-overview.pdf
This presents an opportunity re-evaluate your overtime policies. This includes looking at all your exempt positions and possibly increasing salaries, where feasible, to get above the new threshold. You can also review and limit permissible overtime. It’s also worth considering that your clients might use more part time help, so a marketing campaign geared towards this new rule may be very effective.
The changes are complicated and failure to apply them properly could lead to fines and penalties. If you’re considering restructuring your overtime policy lessen the impact of the rules, a professional employer organization (PEO) can help overhaul your policies to guarantee that any changes you make comply with the overtime rules.
Visit our web site at www.StaffingCompSolutions.com, call us at 202-302-1212, or email us at david@StaffingCompSolutions.com for more information about workers’ compensation and administration payroll solutions.
Sincerely
David Schek
President
StaffingCompSolutions.com