Here's how small businesses can prepare for possible changes to federal regulations on overtime pay.
Will the amount of overtime compensation that you are required to pay your employees go up soon? It certainly looks like it. That’s because, after announcing its intentions to review overtime compensation last year, the Department of Labor is working on new rules that could be released as early as this month.
Secretary of Labor Marty Walsh told Congress last year that he viewed the salary cutoff for earning overtime by law — less than $35,568 a year — as “definitely” too low, and that his department was reviewing regulation in that area, Bloomberg Law reported at the time.
Currently, the Department of Labor requires that employees covered by the Fair Labor Standards Act must receive overtime pay for working more than 40 hours in a workweek, unless the employee is covered by certain exemptions.
Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week, or $35,568 a year. Certain executive, administrative, professional and outside sales employees are exempt from this rule.
These regulations are generally the same for businesses operating in Pennsylvania, New Jersey and Delaware. However, there are additional rules, both from the states and the Department of Labor, for when workweeks and pay amounts fluctuate or are not consistent period to period.
As experts wait for the Labor Department’s announcement, many agree...
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