Keeping an Eye on Overtime Rules in 2019, by Mark Perlberg, CEO
This year, the U.S. Department of Labor is planning to change the federal overtime rules. Is your business prepared for changes that could make many more employees eligible for overtime pay? The salary level for employees who are exempt, or unable to earn overtime pay, is going to be reevaluated and many employers could see a rise in their labor costs. What can employers do to plan for potential changes?
One option is to simply budget for overtime and plan to pay employees time-and-a-half wages when they work more than 40 hours in a week. Another choice is to plan to bump the employees’ salaries above the new threshold so they are exempt from overtime pay. Employers can also consider hiring more employees to spread the work around, thereby minimizing the need for overtime hours. Although the exact changes are not yet known, businesses should be proactive and analyze the potential impact, review all job classifications and determine options, so they are prepared for any changes.