You’ve probably heard about the new overtime rules issued last week by President Obama.
For a quick recap: Obama raised the salary at which an employee becomes exempt for overtime rules. Now, salaried employees have to make more than $47,500 to be exempt from earning overtime when they work beyond 40 hours a week. Formerly, the cap for overtime was $23,660.
Hourly employees will mostly all still be guaranteed overtime. So for companies with mostly hourly workers, this won’t kick up too much of a dust.
Overall, though, it is expected to raise salaried employees eligible for overtime from 7 percent to 35 percent. If you’re a business owner, you may or may not be happy to hear that.
ADP, a long-time accounting & human resources expert, recommends employing technology to closely monitor workers’ hours, along with some other steps that can help you keep overtime under control.
Also note: employers have until Dec. 1 to make preparations before the new policy takes effect.