On February 9, 100 members of Congress sent a letter to Secretary of Labor Thomas Perez arguing that the proposed overtime regulations will "hurt American workers and the businesses that employ them." While the letter reflects the sentiments of many business owners, the letter is akin to standing on the tracks to stop a locomotive. This train is coming whether we like it or not.
All signs point to July 2016 as the date the proposed regulations will become final. Employers will be given a "compliance period" of anywhere from 90 to 180 days to make sure their employees are paid correctly under the new requirements. The annual salary level to qualify for an exemption from overtime is increasing by 113 percent from $23,660 to $50,440. So if your employee doesn't make $50,440 per year, they will need to be paid time and a half for all hours worked in excess of 40 per week.
Now is the time to start preparing! Join us March 22 for our next webinar, "Fireworks in July 2016 – The Final DOL Overtime Regs Are Coming!" where we will discuss steps every employer should be taking right now to prepare for the upcoming changes in the overtime law.