Overtime Rule Info
Friday, May 20, 2016
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.