Friday, May 27, 2016

New Overtime Rules changing December 1, 2016

Are you an employer? If so, you’ve got a major challenge to accomplish in the next few months.
Most businesses aren’t ready for the new overtime and worker classification changes to the Fair Labor Standards Act (FLSA) that the Department of Labor recently published, which will impact to millions of U.S. workers and their employers. The rules go into effect December 1, unless Congress intervenes to prevent or modify them.
Why do these changes matter? Because it will almost certainly affect how you pay at least some of your employees. In brief, if you have a salaried worker making under $46,467 per year, you will either need to give them a pay increase, cut them to hourly, or start paying them overtime when they work more than 40 hours per week.
“Businesses aren’t really aware of the significance of these rule changes,” said Tara Wolckenhauer, Division VP at ADP. “We really need to communicate to them the impact of these rules, if they do go into effect. How will it impact the way we work, how it will change internal workflows, and what businesses need to be doing to prepare.”

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