The Alabama Road Builder - Summer 2016 - (Page 10)
By Chad Halvorson
he U.S. Department of Labor
recently announced new regulations that will double the salary threshold for overtime pay from
The new rule, which takes effect
on December 1, 2016, will
create overtime pay eligibility for
4.2 million more workers across
the United States (60,000 in Alabama).
For business owners, the regulations
create new challenges that require
immediate attention. In order to comply by December, businesses employing both hourly and full-time workers
will need to make significant changes
in terms of how they manage workers,
track time, and pay wages.
$23,660 to $47,476
This article appeared as a blog post May 20
on www.wheniwork.com/blog/ and has been
reprinted by permission.
About New Overtime Rules
* Historically, the percentage of the U.S.
workforce who qualify for overtime
has fallen from 62% in 1975 to 7%
today. The new regulations presented
by the Department of Labor will
now bring that number up to 35%,
according this report from USA Today.
* The new rules will raise the salary
threshold indicating eligibility from
$455/week to $913 ($47,476 per year),
offering new protections to 4.2 million
* The salary threshold will be updated
every three years based on wage
growth over time, with the first update
coming on on January 1, 2020 when
the threshold will be raised to $51,000.
* The final rule will, as stated in this
report from the Department of
Before making any changes to your
business, it's important that you take
some time to understand the facts
surrounding the new overtime rules.
Here's a quick summary of the most
Labor, "allow up to 10
percent of the salary
threshold for non-HCE
Employee) employees to
be met by non-discretionary
bonuses, incentive pay, or
commissions, provided these payments
are made on at least a quarterly basis."
* No changes will be made to the "duties
test" that determines whether white
collar salaried workers earning more
than the salary threshold are ineligible
for overtime pay.
* For a more detailed summary of the
final ruling, access this resource
compiled by the DOL.
Table of Contents for the Digital Edition of The Alabama Road Builder - Summer 2016
INDEX TO ADVERTISERS/ADVERTISERS.COM
EXECUTIVE DIRECTOR’S MESSAGE
HOW BUSINESSES CAN PREPARE FOR THE NEW OVERTIME RULE
SPRING FLING 2016 HIGHLIGHTS
ENGAGING OUR NEXT GENERATION OF INDUSTRY LEADERS
4 STEPS TO CHANGING YOUR BUSINESS STRUCTURE
5 WAYS TO BUILD TRUST IN A BUSINESS
PRODUCTS AND SERVICES MARKETPLACE
HEARD ALONG THE HIGHWAY
The Alabama Road Builder - Summer 2016