Petrogram - Fall 2016 - (Page 18)
By Chad Halvorson
he U.S. Department
of Labor recently
announced new regulations that will double
the salary threshold
for overtime pay from
$23,660 to $47,476. 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 (331,000 in Florida).
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.
About New Overtime Rules
This article appeared as a blog post May 20
on www.wheniwork.com/blog/ and has been
reprinted by permission.
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
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
View past issues of Petrogram online at www.fpma.org
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:
The final rule will, as stated
in this report from the
Department of Labor,
"allow up to 10 percent
of the salary threshold for
non-HCE (Highly Compensated
Employee) employees to be met by nondiscretionary 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
For a more detailed summary of the final
ruling, access this resource compiled by
Table of Contents for the Digital Edition of Petrogram - Fall 2016
Customer Service That Sells to Boomers Comes from Training Millennials
Best Practices to Maximize Safety and Minimize Loss
Tapping into Craft Beer
Four Keys to C-Store Success
How Business Owners can Prepare for New Overtime Pay Rules
Calendar of Events
Index of Advertisers/Advertiser.com
Petrogram - Fall 2016
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