Recently, the federal government updated overtime regulations in an effort to extend overtime pay eligibility to more workers. The new rules update the salary and compensation levels needed for certain “white collar” employees to be classified as exempt, making more employees potentially eligible for overtime pay- which could put your company at risk for noncompliance and affect your bottom line.
This new law goes into effect December 1, 2016 and will affect the way more than 4 million workers in the United States are paid.
Where did the new salary levels come from? The minimum salary level for executive, administrative and professional exempt employees is equal to the 40th percentile of full-time salaried workers in the lowest wage census region of the US. This salary amount will automatically increase every three years.
So, what do you need to know about the updated rule?
How to know if your employee should be exempt? Follow this flow chart provided by Express Employment Professionals International Headquarters.
This information is provided by Erin Pardue, Marketing Manager for Express Employment Professionals. To learn more, visit ExpressIndySouth.com or contact Erin or Mike Heffner (Franchise Owner) at 317-888-5700.