The Alabama Road Builder - Summer 2016 - (Page 10)

feature By Chad Halvorson T 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. 10 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 additional workers. * 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 relevant information: Labor, "allow up to 10 percent of the salary threshold for non-HCE (Highly Compensated 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. www.alrba.org http://www.wheniwork.com/blog/ http://www.alrba.org

Table of Contents for the Digital Edition of The Alabama Road Builder - Summer 2016

INDEX TO ADVERTISERS/ADVERTISERS.COM
EXECUTIVE DIRECTOR’S MESSAGE
PRESIDENT’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
ARTBA
MEMBER PROFILE
PRODUCTS AND SERVICES MARKETPLACE
HEARD ALONG THE HIGHWAY

The Alabama Road Builder - Summer 2016

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