What to know about current rules and preparing for new requirements in effect next year.
10/25/2019 9:00
With the new overtime rules taking effect next year, it’s important to start reviewing overtime and employee exemption policies.
In an article published by the U.S. Small Business Administration, attorney and advocate for small businesses and entrepreneurs Barbara Weltman answers five questions about the overtime rules for employers.
“There’s no law—federal or state—that caps the number of hours a person can work (other than for minors). But if you are an employer, be sure to understand that working past 40 hours triggers overtime rules for certain employees. Some of these rules have been around for years, while others are new,” Weltman writes.
For example, effective Jan. 1, 2020, standard salary levels for nonexempt employees who must receive overtime pay will increase and it is estimated, because of the increase, more than 1.3 million workers may be eligible for overtime pay, according to the article.
Weltman also covers hours employees must count toward their overtime and compliance with the overtime rules.
Before the new rule takes effect, companies should review their overtime, scheduling, and employee exemption policies to determine which employees meet the new salary thresholds, ACA International previously reported.
“The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA’s minimum wage and overtime pay requirements,” according to the Department of Labor.