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News & Press: OTF News

Overtime Rule Info

Friday, May 20, 2016  
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On May 18, 2016, the US Department of Labor released a new rule pertaining to overtime pay and salaried employees. Under current law, businesses are exempt from paying white-collar employees overtime as long as their salary is above $23,660. The new rule, which goes into effect December 1, 2016, will increase the salary threshold to $47,476.

Employers will have several options in which they can be in compliance. First, employers can increase the salaried employee’s wage to at least $47,476. If employers choose not to do this, they may keep salaried employees below the new threshold and limit hours to 40 hours per week or less, or pay time-and-a-half for hours worked over 40. Employers may also choose to reclassify an employee from a salaried position to an hourly position.

The turf industry will see a dramatic impact under this new rule. Most entry-level to mid-management positions will be affected. Businesses need to take action now to ensure that they will be in compliance by December 1, 2016. It is estimated that roughly 4.2 million workers in the US and 134,000 in Ohio will be impacted by the new overtime rule. For more information, please visit the US Department of Labor website here.

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