On September 24th, 2019, the Department of Labor released the new overtime rule that will go into effect on January 1, 2020. Under the new rule, minimum salary requirements for White Collar Exemptions (executive, administrative, professional and highly compensated individuals) will increase from $455 per week ($23,600 annually) to $684 per week ($35,568 annually).
Who This Will Affect?
An estimated additional 1.2 million workers will now be eligible for overtime pay under the new overtime rule. Business owners will need to identify employees that may now be eligible, and determine how these employees need to be compensated after 2019 to remain compliant with Department of Labor regulations.
As an Employer, What Should I Do?
- Ensure you are tracking hours for all hourly and salary employees. An Automated Timekeeping System will make this requirement simple.
- Identify current “overtime exempt” employees, and determine if they will remain exempt after 2019.
- If an employee will not meet the new requirements, consider your options:
- Increase their salary to meet the new minimum requirements.
- Pay the required overtime when they exceed 40 hours in a week.
- Implement a Fluctuating Work Week for eligible employees in eligible states.
Whatever option you decide, Time & Pay is here to make compliance and payroll simple. We will provide guidance, as well as the tools you need to help better manage your employees, labor costs, and cash flow. Contact us today to learn more!
About Time & Pay:
Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services, guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go workers comp, human resource management systems and services, ACA compliance and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact Us today to learn why business owners throughout the country are saying:
“Time & Pay! Why would you do payroll and timekeeping any other way?”